Does Correlation Always Imply Causation? Why or Why Not? Explain

question 78

Essay

Does correlation always imply causation? Why or why not? Explain with the help of real-life examples.

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Definitions:

Recession 2008-2009

A period marked by a significant decline in economic activity across the global economy, initiated by the financial crisis of 2007-2008.

Business Cycle

The natural rise and fall of economic growth, consisting of periods of expansion and contraction in the economy over time.

Aggregate Demand

The total demand for goods and services within a particular market or economy at current price levels.

Price Level

The price level is an index that measures the average prices of goods and services in an economy over a period of time.