[{"data":1,"prerenderedAt":1219},["ShallowReactive",2],{"article:\u002Farticles\u002Fgdp-and-the-business-cycle":3},{"article":4,"related":1205},{"id":5,"title":6,"author":7,"body":8,"category":1191,"description":1192,"extension":1193,"kind":1194,"meta":1195,"navigation":1196,"path":1197,"publishedAt":1198,"readingTime":1199,"reviewer":1200,"seo":1201,"stem":1202,"trending":1203,"updatedAt":1198,"__hash__":1204},"articles\u002Farticles\u002Fgdp-and-the-business-cycle.md","GDP and the Business Cycle: How Economies Grow and Shrink","Lynktor Editorial Team",{"type":9,"value":10,"toc":1168},"minimark",[11,16,25,31,65,69,72,77,80,281,530,534,537,541,548,555,559,566,740,743,747,758,764,768,771,809,812,816,819,840,843,847,854,880,883,887,894,898,901,927,931,934,965,969,972,1001,1004,1008,1016,1020],[12,13,15],"h2",{"id":14},"the-economys-scoreboard","The economy's scoreboard",[17,18,19,20,24],"p",{},"When news reports say \"the economy grew 2.5% last year,\" they almost always mean ",[21,22,23],"strong",{},"gross domestic product",", or GDP. It is the single most watched number in economics: it decides whether a period counts as a boom or a recession, it drives central bank decisions, and it underpins comparisons between countries.",[17,26,27,30],{},[21,28,29],{},"GDP is the total market value of all final goods and services produced within a country during a given period."," Every word in that definition does work:",[32,33,34,41,47,53,59],"ul",{},[35,36,37,40],"li",{},[21,38,39],{},"Market value."," Different things, such as apples and haircuts, are added together using their prices.",[35,42,43,46],{},[21,44,45],{},"Final goods and services."," Only items sold to their end user count. The flour a bakery buys is not counted separately, because its value is already included in the price of the bread. Counting both would be double counting.",[35,48,49,52],{},[21,50,51],{},"Produced."," Sales of used cars or existing homes do not add to GDP, because they were produced in earlier years. (The dealer's or agent's services do count.)",[35,54,55,58],{},[21,56,57],{},"Within a country."," A car built in Ohio by a Japanese-owned company counts in U.S. GDP. A related measure, gross national product (GNP), counts production by a country's residents wherever it happens.",[35,60,61,64],{},[21,62,63],{},"During a period."," GDP is a flow, usually reported per quarter and per year, not a stock of wealth.",[12,66,68],{"id":67},"three-ways-to-measure-the-same-thing","Three ways to measure the same thing",[17,70,71],{},"Every dollar spent on a final product is a dollar of income to someone, so GDP can be measured three ways that should, in principle, give the same answer.",[73,74,76],"h3",{"id":75},"_1-the-expenditure-approach","1. The expenditure approach",[17,78,79],{},"Add up spending on final goods and services by four groups:",[81,82,85],"span",{"className":83},[84],"katex-display",[81,86,89,150],{"className":87},[88],"katex",[81,90,93],{"className":91},[92],"katex-mathml",[94,95,98],"math",{"xmlns":96,"display":97},"http:\u002F\u002Fwww.w3.org\u002F1998\u002FMath\u002FMathML","block",[99,100,101,145],"semantics",{},[102,103,104,108,112,116,119,122,124,127,129,133,136,139,142],"mrow",{},[105,106,107],"mtext",{},"GDP",[109,110,111],"mo",{},"=",[113,114,115],"mi",{},"C",[109,117,118],{},"+",[113,120,121],{},"I",[109,123,118],{},[113,125,126],{},"G",[109,128,118],{},[109,130,132],{"stretchy":131},"false","(",[113,134,135],{},"X",[109,137,138],{},"−",[113,140,141],{},"M",[109,143,144],{"stretchy":131},")",[146,147,149],"annotation",{"encoding":148},"application\u002Fx-tex","\\text{GDP} = C + I + G + (X - M)",[81,151,155,184,207,226,244,267],{"className":152,"ariaHidden":154},[153],"katex-html","true",[81,156,159,164,172,177,181],{"className":157},[158],"base",[81,160],{"className":161,"style":163},[162],"strut","height:0.6833em;",[81,165,169],{"className":166},[167,168],"mord","text",[81,170,107],{"className":171},[167],[81,173],{"className":174,"style":176},[175],"mspace","margin-right:0.2778em;",[81,178,111],{"className":179},[180],"mrel",[81,182],{"className":183,"style":176},[175],[81,185,187,191,196,200,204],{"className":186},[158],[81,188],{"className":189,"style":190},[162],"height:0.7667em;vertical-align:-0.0833em;",[81,192,115],{"className":193,"style":195},[167,194],"mathnormal","margin-right:0.0715em;",[81,197],{"className":198,"style":199},[175],"margin-right:0.2222em;",[81,201,118],{"className":202},[203],"mbin",[81,205],{"className":206,"style":199},[175],[81,208,210,213,217,220,223],{"className":209},[158],[81,211],{"className":212,"style":190},[162],[81,214,121],{"className":215,"style":216},[167,194],"margin-right:0.0785em;",[81,218],{"className":219,"style":199},[175],[81,221,118],{"className":222},[203],[81,224],{"className":225,"style":199},[175],[81,227,229,232,235,238,241],{"className":228},[158],[81,230],{"className":231,"style":190},[162],[81,233,126],{"className":234},[167,194],[81,236],{"className":237,"style":199},[175],[81,239,118],{"className":240},[203],[81,242],{"className":243,"style":199},[175],[81,245,247,251,255,258,261,264],{"className":246},[158],[81,248],{"className":249,"style":250},[162],"height:1em;vertical-align:-0.25em;",[81,252,132],{"className":253},[254],"mopen",[81,256,135],{"className":257,"style":216},[167,194],[81,259],{"className":260,"style":199},[175],[81,262,138],{"className":263},[203],[81,265],{"className":266,"style":199},[175],[81,268,270,273,277],{"className":269},[158],[81,271],{"className":272,"style":250},[162],[81,274,141],{"className":275,"style":276},[167,194],"margin-right:0.109em;",[81,278,144],{"className":279},[280],"mclose",[32,282,283,318,352,386],{},[35,284,285,317],{},[21,286,287,288,316],{},"Consumption (",[81,289,291,304],{"className":290},[88],[81,292,294],{"className":293},[92],[94,295,296],{"xmlns":96},[99,297,298,302],{},[102,299,300],{},[113,301,115],{},[146,303,115],{"encoding":148},[81,305,307],{"className":306,"ariaHidden":154},[153],[81,308,310,313],{"className":309},[158],[81,311],{"className":312,"style":163},[162],[81,314,115],{"className":315,"style":195},[167,194],"):"," household spending on goods and services, from groceries to streaming subscriptions. In the United States this is roughly two-thirds of GDP.",[35,319,320,351],{},[21,321,322,323,316],{},"Investment (",[81,324,326,339],{"className":325},[88],[81,327,329],{"className":328},[92],[94,330,331],{"xmlns":96},[99,332,333,337],{},[102,334,335],{},[113,336,121],{},[146,338,121],{"encoding":148},[81,340,342],{"className":341,"ariaHidden":154},[153],[81,343,345,348],{"className":344},[158],[81,346],{"className":347,"style":163},[162],[81,349,121],{"className":350,"style":216},[167,194]," business spending on equipment, software, and buildings, plus new home construction and changes in inventories. In economics, \"investment\" means creating new productive capital, not buying stocks.",[35,353,354,385],{},[21,355,356,357,316],{},"Government purchases (",[81,358,360,373],{"className":359},[88],[81,361,363],{"className":362},[92],[94,364,365],{"xmlns":96},[99,366,367,371],{},[102,368,369],{},[113,370,126],{},[146,372,126],{"encoding":148},[81,374,376],{"className":375,"ariaHidden":154},[153],[81,377,379,382],{"className":378},[158],[81,380],{"className":381,"style":163},[162],[81,383,126],{"className":384},[167,194]," spending by all levels of government on goods and services, such as roads, teachers' salaries, and defense. Transfer payments like pensions are excluded, because they are not payments for new production.",[35,387,388,442,443,471,472,500,501,529],{},[21,389,390,391,316],{},"Net exports (",[81,392,394,412],{"className":393},[88],[81,395,397],{"className":396},[92],[94,398,399],{"xmlns":96},[99,400,401,409],{},[102,402,403,405,407],{},[113,404,135],{},[109,406,138],{},[113,408,141],{},[146,410,411],{"encoding":148},"X - M",[81,413,415,433],{"className":414,"ariaHidden":154},[153],[81,416,418,421,424,427,430],{"className":417},[158],[81,419],{"className":420,"style":190},[162],[81,422,135],{"className":423,"style":216},[167,194],[81,425],{"className":426,"style":199},[175],[81,428,138],{"className":429},[203],[81,431],{"className":432,"style":199},[175],[81,434,436,439],{"className":435},[158],[81,437],{"className":438,"style":163},[162],[81,440,141],{"className":441,"style":276},[167,194]," exports minus imports. Imports are subtracted because they are already included in ",[81,444,446,459],{"className":445},[88],[81,447,449],{"className":448},[92],[94,450,451],{"xmlns":96},[99,452,453,457],{},[102,454,455],{},[113,456,115],{},[146,458,115],{"encoding":148},[81,460,462],{"className":461,"ariaHidden":154},[153],[81,463,465,468],{"className":464},[158],[81,466],{"className":467,"style":163},[162],[81,469,115],{"className":470,"style":195},[167,194],", ",[81,473,475,488],{"className":474},[88],[81,476,478],{"className":477},[92],[94,479,480],{"xmlns":96},[99,481,482,486],{},[102,483,484],{},[113,485,121],{},[146,487,121],{"encoding":148},[81,489,491],{"className":490,"ariaHidden":154},[153],[81,492,494,497],{"className":493},[158],[81,495],{"className":496,"style":163},[162],[81,498,121],{"className":499,"style":216},[167,194],", and ",[81,502,504,517],{"className":503},[88],[81,505,507],{"className":506},[92],[94,508,509],{"xmlns":96},[99,510,511,515],{},[102,512,513],{},[113,514,126],{},[146,516,126],{"encoding":148},[81,518,520],{"className":519,"ariaHidden":154},[153],[81,521,523,526],{"className":522},[158],[81,524],{"className":525,"style":163},[162],[81,527,126],{"className":528},[167,194]," but were produced abroad.",[73,531,533],{"id":532},"_2-the-income-approach","2. The income approach",[17,535,536],{},"Add up all the income earned from production: wages and salaries, business profits, rent, and interest, with adjustments for taxes on production and for depreciation.",[73,538,540],{"id":539},"_3-the-production-value-added-approach","3. The production (value-added) approach",[17,542,543,544,547],{},"Add up the ",[21,545,546],{},"value added"," at each stage of production: the value of a firm's output minus the cost of the inputs it bought from other firms. A farmer grows wheat worth $1, a miller turns it into flour worth $1.50, a baker sells bread for $3. The value added is $1 + $0.50 + $1.50 = $3, exactly the price of the final loaf.",[17,549,550,551,554],{},"In the United States, the Bureau of Economic Analysis publishes GDP every quarter, starting with an \"advance\" estimate about a month after the quarter ends, then revising it as more data arrive. Quarterly growth is usually reported as an ",[21,552,553],{},"annualized"," rate: the pace the economy would grow at over a full year if that quarter's growth continued.",[12,556,558],{"id":557},"nominal-vs-real-gdp","Nominal vs. real GDP",[17,560,561,562,565],{},"If prices double and output stays the same, nominal GDP doubles, but nobody is better off. To see real changes in production, economists use ",[21,563,564],{},"real GDP",", which values output at constant prices from a base year.",[81,567,569],{"className":568},[84],[81,570,572,605],{"className":571},[88],[81,573,575],{"className":574},[92],[94,576,577],{"xmlns":96,"display":97},[99,578,579,602],{},[102,580,581,584,586,595,598],{},[105,582,583],{},"Real GDP",[109,585,111],{},[587,588,589,592],"mfrac",{},[105,590,591],{},"Nominal GDP",[105,593,594],{},"GDP price deflator",[109,596,597],{},"×",[599,600,601],"mn",{},"100",[146,603,604],{"encoding":148},"\\text{Real GDP} = \\frac{\\text{Nominal GDP}}{\\text{GDP price deflator}} \\times 100",[81,606,608,630,730],{"className":607,"ariaHidden":154},[153],[81,609,611,615,621,624,627],{"className":610},[158],[81,612],{"className":613,"style":614},[162],"height:0.6944em;",[81,616,618],{"className":617},[167,168],[81,619,583],{"className":620},[167],[81,622],{"className":623,"style":176},[175],[81,625,111],{"className":626},[180],[81,628],{"className":629,"style":176},[175],[81,631,633,637,721,724,727],{"className":632},[158],[81,634],{"className":635,"style":636},[162],"height:2.2519em;vertical-align:-0.8804em;",[81,638,640,644,718],{"className":639},[167],[81,641],{"className":642},[254,643],"nulldelimiter",[81,645,647],{"className":646},[587],[81,648,652,709],{"className":649},[650,651],"vlist-t","vlist-t2",[81,653,656,704],{"className":654},[655],"vlist-r",[81,657,661,678,689],{"className":658,"style":660},[659],"vlist","height:1.3714em;",[81,662,664,669],{"style":663},"top:-2.314em;",[81,665],{"className":666,"style":668},[667],"pstrut","height:3em;",[81,670,672],{"className":671},[167],[81,673,675],{"className":674},[167,168],[81,676,594],{"className":677},[167],[81,679,681,684],{"style":680},"top:-3.23em;",[81,682],{"className":683,"style":668},[667],[81,685],{"className":686,"style":688},[687],"frac-line","border-bottom-width:0.04em;",[81,690,692,695],{"style":691},"top:-3.677em;",[81,693],{"className":694,"style":668},[667],[81,696,698],{"className":697},[167],[81,699,701],{"className":700},[167,168],[81,702,591],{"className":703},[167],[81,705,708],{"className":706},[707],"vlist-s","​",[81,710,712],{"className":711},[655],[81,713,716],{"className":714,"style":715},[659],"height:0.8804em;",[81,717],{},[81,719],{"className":720},[280,643],[81,722],{"className":723,"style":199},[175],[81,725,597],{"className":726},[203],[81,728],{"className":729,"style":199},[175],[81,731,733,737],{"className":732},[158],[81,734],{"className":735,"style":736},[162],"height:0.6444em;",[81,738,601],{"className":739},[167],[17,741,742],{},"When people talk about \"economic growth,\" they mean growth in real GDP. The difference between nominal and real growth is, roughly, inflation.",[12,744,746],{"id":745},"gdp-per-person","GDP per person",[17,748,749,750,753,754,757],{},"A country's GDP grows when its population grows, even if no one is better off. ",[21,751,752],{},"GDP per capita"," divides GDP by population and is a better guide to living standards. For comparisons between countries, economists often adjust for ",[21,755,756],{},"purchasing power parity (PPP)",", because a dollar buys more in some countries than in others.",[759,760,761],"pull-quote",{},[17,762,763],{},"GDP measures the size of the economy's engine. It does not measure where the car is going.",[12,765,767],{"id":766},"what-gdp-leaves-out","What GDP leaves out",[17,769,770],{},"GDP is a measure of market production, not of well-being. It has well-known blind spots:",[32,772,773,779,785,791,797,803],{},[35,774,775,778],{},[21,776,777],{},"Unpaid work."," Caring for children or elderly relatives at home does not count; hiring someone to do the same work does.",[35,780,781,784],{},[21,782,783],{},"The informal economy."," Cash-in-hand work and illegal activity are hard to measure.",[35,786,787,790],{},[21,788,789],{},"Leisure."," A country where people work fewer hours for the same output looks no different from one where they work more.",[35,792,793,796],{},[21,794,795],{},"Environmental damage."," Cutting down a forest adds to GDP; the loss of the forest is not subtracted.",[35,798,799,802],{},[21,800,801],{},"Distribution."," GDP can rise while most people's incomes stagnate, if gains go mainly to a few.",[35,804,805,808],{},[21,806,807],{},"Quality and free products."," Better medicine and free online services improve lives in ways prices capture poorly.",[17,810,811],{},"None of this makes GDP useless. It is the best single gauge of how much an economy produces, and production is what pays for wages, pensions, and public services. It is simply not the whole story.",[12,813,815],{"id":814},"where-growth-comes-from","Where growth comes from",[17,817,818],{},"Over the long run, real GDP grows for three reasons:",[820,821,822,828,834],"ol",{},[35,823,824,827],{},[21,825,826],{},"More workers",", through population growth, immigration, and higher participation in the labor force.",[35,829,830,833],{},[21,831,832],{},"More capital",", meaning machines, buildings, infrastructure, and software per worker.",[35,835,836,839],{},[21,837,838],{},"Higher productivity",", meaning more output from the same inputs, thanks to technology, education, better management, and better institutions.",[17,841,842],{},"The third is the most important. Adding workers and machines eventually runs into diminishing returns, but new ideas do not run out in the same way. Small differences in growth rates compound dramatically: an economy growing 3% a year doubles in about 23 years; at 1% it takes about 70.",[12,844,846],{"id":845},"the-business-cycle","The business cycle",[17,848,849,850,853],{},"Growth is not smooth. Real GDP rises and falls around its long-run trend in a pattern called the ",[21,851,852],{},"business cycle",", which has four phases:",[820,855,856,862,868,874],{},[35,857,858,861],{},[21,859,860],{},"Expansion."," Output, employment, and incomes rise. Business confidence and borrowing grow.",[35,863,864,867],{},[21,865,866],{},"Peak."," The economy runs near or above its capacity. Unemployment is low, and inflation pressures often build.",[35,869,870,873],{},[21,871,872],{},"Contraction."," Output falls, layoffs increase, and spending slows. A severe contraction is a recession, and a very deep and long one is a depression.",[35,875,876,879],{},[21,877,878],{},"Trough."," The low point, after which recovery begins.",[17,881,882],{},"Cycles are irregular. U.S. expansions since World War II have lasted anywhere from about a year to more than ten years, and recessions have usually been much shorter than expansions.",[73,884,886],{"id":885},"what-counts-as-a-recession","What counts as a recession",[17,888,889,890,893],{},"A popular rule of thumb defines a recession as two consecutive quarters of falling real GDP. In the United States, however, the official arbiter is a committee of the ",[21,891,892],{},"National Bureau of Economic Research (NBER)",". It defines a recession as a significant decline in economic activity that is spread across the economy and lasts more than a few months, and it looks at employment, income, spending, and industrial production, not GDP alone. It often announces the dates many months after the fact.",[73,895,897],{"id":896},"what-causes-downturns","What causes downturns",[17,899,900],{},"Recessions have many triggers, often in combination:",[32,902,903,909,915,921],{},[35,904,905,908],{},[21,906,907],{},"Demand shocks:"," a collapse in confidence, a stock market crash, or a fall in housing prices that makes households and firms cut spending.",[35,910,911,914],{},[21,912,913],{},"Supply shocks:"," a sudden jump in oil prices, a pandemic, or a natural disaster that makes production more expensive or impossible.",[35,916,917,920],{},[21,918,919],{},"Financial crises:"," when banks stop lending, as in 2008, businesses and households cannot borrow to spend or invest.",[35,922,923,926],{},[21,924,925],{},"Policy tightening:"," central banks raising interest rates sharply to fight inflation can slow the economy into recession.",[73,928,930],{"id":929},"signals-people-watch","Signals people watch",[17,932,933],{},"No one can predict recessions reliably, but some indicators tend to move early:",[32,935,936,943,949,955],{},[35,937,938,939,942],{},"An ",[21,940,941],{},"inverted yield curve",", when short-term interest rates rise above long-term ones, has preceded many U.S. recessions, though not with consistent timing.",[35,944,945,948],{},[21,946,947],{},"Initial jobless claims",", filed weekly, can show layoffs rising before monthly unemployment data do.",[35,950,951,954],{},[21,952,953],{},"Purchasing managers' surveys"," track new orders at factories and service firms.",[35,956,957,960,961,964],{},[21,958,959],{},"Building permits"," and ",[21,962,963],{},"consumer confidence"," give clues about future spending.",[12,966,968],{"id":967},"how-policy-responds","How policy responds",[17,970,971],{},"When the economy weakens, governments and central banks try to soften the blow:",[32,973,974,986],{},[35,975,976,979,980,985],{},[21,977,978],{},"Monetary policy:"," the central bank cuts interest rates to encourage borrowing and spending. See ",[981,982,984],"a",{"href":983},"\u002Farticles\u002Fwhat-the-fed-does-with-interest-rates","what the Fed does with interest rates",".",[35,987,988,991,992,995,996,1000],{},[21,989,990],{},"Fiscal policy:"," the government cuts taxes or raises spending. Some of this happens automatically through ",[21,993,994],{},"automatic stabilizers",": tax receipts fall and unemployment benefits rise as the economy weakens, supporting incomes without any new law. Our guide to ",[981,997,999],{"href":998},"\u002Farticles\u002Ffiscal-policy-and-government-debt","fiscal policy and government debt"," explains the trade-offs.",[17,1002,1003],{},"In a boom that threatens to overheat, the same tools work in reverse.",[12,1005,1007],{"id":1006},"why-this-matters-to-you","Why this matters to you",[17,1009,1010,1011,1015],{},"The business cycle affects everyday decisions: how secure your job is, how easy it is to get a loan, and how your investments perform. Recessions are a normal, recurring part of economic life. Having an ",[981,1012,1014],{"href":1013},"\u002Farticles\u002Fhow-to-build-an-emergency-fund","emergency fund",", avoiding debt you could not carry through a job loss, and keeping long-term investments diversified are the practical ways to prepare for a downturn without trying to predict its timing.",[12,1017,1019],{"id":1018},"key-ideas-to-remember","Key ideas to remember",[32,1021,1022,1025,1156,1159,1162,1165],{},[35,1023,1024],{},"GDP is the market value of final goods and services produced in a country over a period.",[35,1026,1027,1028,1155],{},"It can be measured by spending, income, or value added: ",[81,1029,1031,1065],{"className":1030},[88],[81,1032,1034],{"className":1033},[92],[94,1035,1036],{"xmlns":96},[99,1037,1038,1062],{},[102,1039,1040,1042,1044,1046,1048,1050,1052,1054,1056,1058,1060],{},[113,1041,115],{},[109,1043,118],{},[113,1045,121],{},[109,1047,118],{},[113,1049,126],{},[109,1051,118],{},[109,1053,132],{"stretchy":131},[113,1055,135],{},[109,1057,138],{},[113,1059,141],{},[109,1061,144],{"stretchy":131},[146,1063,1064],{"encoding":148},"C + I + G + (X - M)",[81,1066,1068,1086,1104,1122,1143],{"className":1067,"ariaHidden":154},[153],[81,1069,1071,1074,1077,1080,1083],{"className":1070},[158],[81,1072],{"className":1073,"style":190},[162],[81,1075,115],{"className":1076,"style":195},[167,194],[81,1078],{"className":1079,"style":199},[175],[81,1081,118],{"className":1082},[203],[81,1084],{"className":1085,"style":199},[175],[81,1087,1089,1092,1095,1098,1101],{"className":1088},[158],[81,1090],{"className":1091,"style":190},[162],[81,1093,121],{"className":1094,"style":216},[167,194],[81,1096],{"className":1097,"style":199},[175],[81,1099,118],{"className":1100},[203],[81,1102],{"className":1103,"style":199},[175],[81,1105,1107,1110,1113,1116,1119],{"className":1106},[158],[81,1108],{"className":1109,"style":190},[162],[81,1111,126],{"className":1112},[167,194],[81,1114],{"className":1115,"style":199},[175],[81,1117,118],{"className":1118},[203],[81,1120],{"className":1121,"style":199},[175],[81,1123,1125,1128,1131,1134,1137,1140],{"className":1124},[158],[81,1126],{"className":1127,"style":250},[162],[81,1129,132],{"className":1130},[254],[81,1132,135],{"className":1133,"style":216},[167,194],[81,1135],{"className":1136,"style":199},[175],[81,1138,138],{"className":1139},[203],[81,1141],{"className":1142,"style":199},[175],[81,1144,1146,1149,1152],{"className":1145},[158],[81,1147],{"className":1148,"style":250},[162],[81,1150,141],{"className":1151,"style":276},[167,194],[81,1153,144],{"className":1154},[280]," is the most familiar form.",[35,1157,1158],{},"Real GDP adjusts for inflation; GDP per capita adjusts for population.",[35,1160,1161],{},"GDP measures production, not well-being, and misses unpaid work, leisure, the environment, and distribution.",[35,1163,1164],{},"Long-run growth comes from more workers, more capital, and above all higher productivity.",[35,1166,1167],{},"Economies move through expansions and contractions; in the U.S., the NBER officially dates recessions.",{"title":1169,"searchDepth":1170,"depth":1170,"links":1171},"",2,[1172,1173,1179,1180,1181,1182,1183,1188,1189,1190],{"id":14,"depth":1170,"text":15},{"id":67,"depth":1170,"text":68,"children":1174},[1175,1177,1178],{"id":75,"depth":1176,"text":76},3,{"id":532,"depth":1176,"text":533},{"id":539,"depth":1176,"text":540},{"id":557,"depth":1170,"text":558},{"id":745,"depth":1170,"text":746},{"id":766,"depth":1170,"text":767},{"id":814,"depth":1170,"text":815},{"id":845,"depth":1170,"text":846,"children":1184},[1185,1186,1187],{"id":885,"depth":1176,"text":886},{"id":896,"depth":1176,"text":897},{"id":929,"depth":1176,"text":930},{"id":967,"depth":1170,"text":968},{"id":1006,"depth":1170,"text":1007},{"id":1018,"depth":1170,"text":1019},"economy","What gross domestic product measures, how it is calculated three ways, why real GDP matters more than nominal, and how expansions and recessions unfold.","md","guide",{},true,"\u002Farticles\u002Fgdp-and-the-business-cycle","2026-10-29",7,"Lynktor Research Desk",{"title":6,"description":1192},"articles\u002Fgdp-and-the-business-cycle",false,"7EZ8gazSgBAmvV92jD9_pLAH5opE4DV1wJHOS9Gx4VI",[1206,1210,1214],{"title":1207,"description":1208,"path":998,"category":1191,"readingTime":1209},"Fiscal Policy and Government Debt, Explained","How governments tax, spend, and borrow; the difference between deficits and debt; when stimulus works; and when debt becomes a problem.",6,{"title":1211,"description":1212,"path":1213,"category":1191,"readingTime":1209},"How Money and Banks Work","What makes something money, how banks create most of it when they lend, what central banks control, and why bank runs happen.","\u002Farticles\u002Fhow-money-and-banks-work",{"title":1215,"description":1216,"path":1217,"category":1191,"readingTime":1218},"Inflation Explained: Causes, Measurement, and Effects","What inflation really is, how it is measured, why it happens, who wins and loses, and how central banks try to keep it in check.","\u002Farticles\u002Finflation-explained",8,1793277327953]