Julia Carle, Chapter 9, question #7

In chapter nine of Naked Economics, I learned about the cycle of recession and recovery. Also the causes of recessions and recoveries and how we today, measure our modern economy. I also got a clearer picture of what gross domestic product (GDP) means, and why it's such an important factor in the economy and the way it runs. I've heard the term GDP several times before, but it was a completely foreign idea to me. Now I can understand that it is simply just the percentage of how much we grew or how much we shrunk as a result of the goods and services produced. The idea of the cycle of recession and recovery also is very interesting to me. It is very much so accurate in that all economies at one point in time are extremely prosperous but then they hit rock bottom. The book even used the U.S. Depression as an example of rock bottom. After this chapter of the book, I have a much better understanding as to why economies have this recurring cycle year after year.