As the pandemic-induced recession unfolded over the past few months, economists and correspondents have speculated on the economy’s recovery, often citing letters from the alphabet. Letters like U or V, or W are used to described the graph of GDP change. The shape of the graph is dependent on macroeconomic variables like unemployment, imports and exports, and the housing market, just to name a few. Much of the discussion is conjecture, as no one can predict the future, and the COVID-19 recession is unlike any other in modern times. It will not be until the recovery is complete that we will know what letter describes the economy’s recovery.
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