Occurs when someone assumes that what is true for a part must also be true for the whole

 Occurs when someone assumes that because one event happened before another, the first event must have caused the second.

The economy went into recession because the central bank raised interest rates.

The stock market surged after a new president was elected. Therefore, the election of the president caused the market to rise.

If one business automates and reduces its labor costs, it gains a competitive advantage. Therefore, if all businesses automate, the economy will be more efficient and everyone will benefit.

If one investor buys a stock early and its price rises, they make a profit. Therefore, if all investors buy stocks, they will all profit.

A government cuts taxes, and GDP grows the following year. Therefore, the tax cut caused the economic growth.

If a few people invest in real estate, property values rise, making them wealthier. Therefore, if everyone invests in real estate, the entire economy will become wealthier.

Inflation is high because the government spent too much money.

A country sees an increase in foreign direct investment (FDI), and shortly afterward, it experiences a financial crisis. Therefore, the FDI must have caused the crisis.

If one country imposes tariffs to protect its domestic industry, it will benefit from reduced foreign competition. Therefore, if all countries impose tariffs, global economies will be stronger.

A central bank prints more money, and inflation rises a few months later. Therefore, the money printing directly caused inflation.

Unemployment is high because of immigration.

If an individual saves more money, they will be financially better off. Therefore, if everyone saves more, the entire economy will be better off.

The stock market crashed because of a new government policy.

A government raises the minimum wage, and shortly afterward, unemployment rises. Therefore, the minimum wage increase must have caused the rise in unemployment.

The economy grew because of tax cuts.