For the last ten years the US economy has experienced an extraordinary long boom and the “Goldilocks economy” seemed to last forever. But the economic situation in the US has changed. Share prices plummeted, consumers are becoming more and more pessimistic about the economic outlook and the chances of a prolonged downturn and a full – fledged recession are rising. For many investors and Americans it was a rude awakening. Now they wonder what caused the economic slowdown and what are the main reasons for the present economic downturn in the US.

If we take look at the bible, there is written down that seven years of plenty were followed by seven years of lean. That means that what goes up must come down; that is the law of the business cycle. For the last 50 years, the previous recessions have been triggered off by a familiar process. First there were several years of expansion, then the consumer price inflation built up and as a consequence the Fed raised interest rates......

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Title: Economy
Approximate Word Count: 716
Approximate Pages: 3 (250 words per double-spaced page)

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