10 Facts about Recession

Post On: February 4, 2017

The following Facts about Recession will explain about a business cycle contraction, which leads into the general decline of economy. The rate of unemployment and bankruptcies increases during the recession. The other indicators include the fall of inflation, business profit, household income, capacity utilization, investment spending and gross domestic products during the recession. Let us check other interesting facts about recession below:

Facts about Recession 1: negative economic growth

Recession is defined as negative growth of economy in United Kingdom.

Facts about Recession

Facts about Recession

Facts about Recession 2: the main characteristics of recession

The adverse demand shock is the primary characteristic of recession for the widespread spending is dropped significantly.

Facts about Recession 3: the causes of recession

The recession may be caused by various events such as an external trade shock, financial crisis, economic bubble bursting and adverse supply shock.

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Recession Facts

Recession Facts

Facts about Recession 4: how the governments handle recession?

The government will handle the recession by having the expansionary macroeconomic policies such as lowering the tax, improving the spending, and increasing the supply of money.

Facts about Recession 5: the definition of recession by the economists

If the unemployment rate is decreased for the last 12 months for around 1.5 to 2 percent, it may be defined as a recession by some economists.

Facts about Recession 6: the authority

The authority, which dates the recession in United States, is NBER. It stands for National Bureau of Economic Research.

Facts about Recession 7: the definition of recession according NBER

NBER has their definition related to recession. It is believed that the real gross domestic product, employment, income, wholesale retail sales and industrial production are affected by the decline of economy, which lasts for a few months.

Recession Pic

Recession Pic

Facts about Recession 8: the declined GDP

The government spending, investment, consumption and net export activity are some economic activities of GDP, which decrease during the recession.

Facts about Recession 9: the recession shapes

The economists define recession in several shapes such as the W-shaped, L-shaped, U-shaped, and V-shaped recessions.

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Recession

Recession

Facts about Recession 10: the recession in the world

The L-shaped recession was spotted in Thailand. In 1997/1998, the U-shaped recession took place in Southeast Asia, Korea and Hong Kong.  Recession also occurred in United States. In 1954 and 1990/1991, the country faced the V-shaped recession characterized by the presence by the short and sharp contraction. Then the recovery occurred rapidly.  In 1949 and 1980 until 1982, it faced the double-dip recession also called as W-shaped recession.

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