Data Show That Only 11 of 27 Recessions Prior to 1990

question 54

Essay

Data show that only 11 of 27 recessions prior to 1990 were preceded by a decline in stock prices. Although stocks are a leading economic indicator,what are some reasons why a stock price decline might not indicate an upcoming recession?

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Definitions:

Normative

Relating to an evaluative or prescriptive standard or principle, often regarding moral or ethical considerations.

Value Judgments

assessments based on personal views about the worth, beauty, or morality of something, rather than on measurable criteria.

Positive

Describes an approach or statement that is based on factual assertions or affirmative actions, often used in the context of economic analysis.

Normative

Refers to prescriptive concepts, reflecting beliefs about what ought to be rather than what is.