An economic phenomenon refers to any observable event or trend that affects the economy. This can include changes in consumer behavior, fluctuations in market prices, or shifts in employment rates. Economists study these phenomena to understand how they impact overall economic health and to predict future trends. Examples of economic phenomena include inflation, where prices rise over time, and recession, a period of economic decline. Other phenomena might involve the effects of government policies, such as tax changes, on businesses and consumers. Understanding these events helps policymakers make informed decisions to promote economic stability.