Causes of instability in the ecconomy
In the history of this country we have had many times where the economy has not done so well. The trend seems to be a growth period followed by a decline in the economy, or a recession. A recession is a period in which real gross domestic product declines for at least two consecutive quarters. It is typically marked by high unemployment and a decline in manufactured goods. The gross domestic product, or GNP, is a measure of the actual output of goods and services in a given period. Often this period is measured in quarters. The Bureau of Economic Research, or NBER, uses a much different definition. The NBER is made up of six economists who have never been wrong when they call a recession. The reason the definition that they use is different then the commonly accepted definition is that their definition is a more accurate definition of a recession. They are looking at the measures of industrial production, employment, real (inflation-adjusted) incomes minus government benefits, and real wholesale and retail sales. This is a more accurate reflection of how the economy is doing and what is going to happen in the future. Just looking at the track record they have is enough to see that the definition that they are using in more accurate.