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All About the Business Cycle: Where Do Recessions Come From?

All About the Business Cycle: Where Do Recessions Come From?

What constitutes a recession? Two quarters of negative real GDP growth? Well, most of the time that “rule of thumb� definition works, but not always. The NBER Business Cycle Dating Committee has a more nuanced way of determining what a recession is. This essay discusses where recessions come from, how they are determined, and how they end.

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