Many Americans are wrong about economic trends. Test your knowledge here.

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Americans person been notoriously glum astir nan country's financial outlook successful nan post-pandemic years, pinch only one-third describing nan system arsenic bully successful a PapaRead News canvass earlier this year.

But increasingly, there's a spread betwixt really a ample information of Americans deliberation nan system is performing and what cardinal indicators show — a dissonance that immoderate picture arsenic a "vibecession." In part, this disconnect reflects nan limitations of economical measurement, which often doesn't seizure nan financial realities facing millions of Americans. 

That said, erstwhile asked astir cardinal economical trends and data, upward of half of Americans are getting nan facts incorrect astir immoderate basal financial issues, according to a new poll from Harris/The Guardian. 

Think you person an meticulous publication connected nan authorities of nan U.S. economy? Answer nan pursuing 4 questions to find out.

Is nan U.S. successful a recession? 

A) Yes
B) No

Answer: The correct reply is B. As commonly defined by economists, a recession is simply a slump successful economic activity, aliases erstwhile GDP is negative. As nan GDP has been growing — fueled partially by beardown user spending — astatine rates that person exceeded economists' expectations, nan U.S. system is not successful a recession.

What Americans believe: About 56% of those polled by Harris/The Guardian said that nan U.S. is presently experiencing a recession. 

How has nan S&P 500 scale performed successful 2024? 

A) Stocks are up for nan year
B) The banal marketplace is down for nan year
C) The marketplace is unchanged

Answer: The correct reply is A. The S&P 500 — a proxy for nan broader banal marketplace — has climbed 11% this year. 

What Americans believe: About half of group polled by Harris/The Guardian said nan banal marketplace is down for nan year. 

How does nan existent unemployment complaint comparison pinch anterior periods? 

A) The unemployment complaint is now adjacent a 50-year low
B) The unemployment complaint is adjacent a 50-year high
C) The unemployment complaint still hasn't recovered from nan pandemic

Answer: The correct reply is A. The jobless complaint stood astatine 3.9% successful April, adjacent a 50-year low. Current unemployment numbers are besides akin to levels knowledgeable anterior to nan pandemic, indicating that jobs mislaid during nan situation person been recovered. 

What Americans believe: About half opportunity unemployment is adjacent a 50-year high.

Is ostentation expanding aliases decreasing?

A) Inflation is rising
B) Inflation is falling
C) Inflation isn't changing

Answer: The reply is B. Inflation, which measures nan complaint of alteration successful prices, has been declining since reaching a highest of 9.1% successful June 2022. In nan astir caller CPI reading, ostentation was 3.4% successful April

What Americans believe: About 7 successful 10 responded that they judge ostentation is rising, nan Harris/Guardian canvass found. 

Are prices still rising? Yes. Although ostentation — nan complaint astatine which prices are changing — is falling, prices are still moving higher. The diminution successful ostentation simply intends those value increases are moderating from nan ample increases knowledgeable successful 2022.

    In:
  • Economy

Aimee Picchi

Aimee Picchi is nan subordinate managing editor for PapaRead MoneyWatch, wherever she covers business and individual finance. She antecedently worked astatine Bloomberg News and has written for nationalist news outlets including USA Today and Consumer Reports.


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