Examples of recession in the following topics:
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- A recession is a business cycle contraction; a general slowdown in economic activity.
- In economics, a recession is a business cycle contraction; a general slowdown in economic activity.
- When these relationships become imbalanced, recession can develop within a country or create pressure for recession in another country.
- Most mainstream economists believe that recessions are caused by inadequate aggregate demand in the economy, and favor the use of expansionary macroeconomic policy during recessions.
- As an informal shorthand, economists sometimes refer to different recession shapes, such as V-shaped, U-shaped, L-shaped, and W-shaped recessions.
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- Expansionary fiscal policies, which are usually implemented during recessions, attempt to increase economic demand.
- Expansionary fiscal policies are usually implemented during recessions because they attempt to increase economic demand, and as a result, increase economic output which is reduced during a recession.
- Evaluate the pros and cons of fiscal policy intervention during recession
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- Expansionary monetary policy is traditionally used to try to combat unemployment in a recession by lowering interest rates.
- Expansionary monetary policy is traditionally used to try to combat unemployment in a recession by lowering interest rates in the hope that easy credit will entice businesses into investing, leading to overall economic growth.
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- Expansionary: This type of policy is usually undertaken during recessions to increase the level of economic activity.
- In times of recession, Keynesian economics suggests that increasing government spending and decreasing tax rates is the best way to stimulate aggregate demand.
- Keynesians argue that this approach should be used in times of recession or low economic activity as an essential tool for building the foundation for strong economic growth and working towards full employment .
- In times of recession, the government uses expansionary fiscal policy to increase the level of economic activity and increase employment.
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- From 1854 through 1919, the American economy spent almost as much time contracting as it did growing: the average economic expansion (defined as an increase in output of goods and services) lasted 27 months, while the average recession (a period of declining output) lasted 22 months.
- From 1919 to 1945, the record improved, with the average expansion lasting 35 months and the average recession lasting 18 months.
- And from 1945 to 1991, things got even better, with the average expansion lasting 50 months and the average recession lasting just 11 months.
- In part, the government's relatively poor record on inflation reflects the fact that it put more stress on fighting recessions (and resulting increases in unemployment) during much of the early post-war period.
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- The 2007-2009 economic collapse was damaging not only to the U.S. but also global markets, driving the global economy into recession.
- This recessionary period spread rapidly around the map, creating a global recession in Q3 and Q4 in 2008 and Q1 of 2009 (defined as a contraction in global GDP growth during that time) as is represented in this figure .
- It is quite clear in this graphic, the global GDP growth dropped dramatically following the U.S. crisis, pitching the entire global economy into a recession.
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- Keynesian economics states that in the short-run, especially during recessions, economic output is substantially influenced by aggregate demand (the total spending in the economy).
- During a recession, the economy may not return naturally to full employment.
- Excessive saving, saving beyond investment, is a serious problem that encouraged recession and even depression.
- The Keynesian School of economic thought emphasized the need for government intervention in order to stabilize and stimulate the economy during a recession or depression.
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- If balanced budgets were required and if the budget was in deficit during a recession, critics argue that the required cuts would make the economy even worse off.
- During recessions governments should run deficits.
- Keynesians argue that increasing government spending and decreasing taxes can minimize the painful effects of a recession.
- By balancing deficits in recessions and surpluses in growth, Keynesians believe that the government can obtain the benefits of a balanced budget without facing the risks of making recessions worse due to spending and revenue limitations.
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- The American Recovery and Reinvestment Act of 2009 (ARRA) was drafted in response to the Great Recession, primarily in order to create jobs.
- The ARRA was drafted in response to the Great Recession.
- Secondary objectives were to provide temporary relief programs for those most impacted by the recession and invest in infrastructure, education, health, and renewable energy .
- However, supporters of ARRA claim that this can be accounted for by noting that the actual recession was subsequently revealed to be much worse than any projections at the time when the ARRA was drawn up.
- Summarize the effects of the use of stimulus in the wake of the Great Recession
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- An expansion is the period from a trough to a peak, and a recession as the period from a peak to a trough.
- The NBER identifies a recession as "a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production. " This is significantly different from the commonly cited definition of a recession being signaled by two consecutive quarters of decline in real GDP.