Answer to Question #261397 in Macroeconomics for sayem

Question

Since 1947 there have been 11 such periods in the

United States. Is there a discernible see a pattern in private firms’ spending before and during a recession.

Answer 1

Stock prices usually plunge during a recession. The stock market may be extremely volatile, with share prices swinging dramatically. Investors respond rapidly to any hint of good or negative news, and the flight to safety can force some investors to withdraw their funds entirely from the stock market.