What is recession and what are the effects of it? Ever since the 2008 financial meltdown often we have been hearing the term recession almost everywhere, be it on the radio, Television or in the news channels of even in the print media. It has become a hot topic of discussion wherever we go. So what exactly is recession? We should try to know a bit more of it before we actually find out the effect of recession on the society as a whole. In simple terms, recession means a situation where the GDP (gross domestic product) of a nation comes down in comparison to the previous years. For example, … [Read more...]
What is recession?
May 12, 2011 By Leave a Comment
Image via Wikipedia Recession is one of the cycles that the economy goes through. Technically, recession happen when a country starts producing less. In other words, the country’s gross domestic product (GDP) starts to decline. There is low industrial production. No manufacturing takes place. A lot of stagnation happens in the economy. Manufactured products lie on the shelf with no one to buy them. When the GDP is on a decline for two consecutive quarters, the country is said to be facing a problem of recession in the economy. The symptoms of recession happen much before it … [Read more...]
Recession Blues
March 7, 2011 By Leave a Comment
Recession usually means a general contraction quite unusual in business practices and mobility with slowdown in economic activities. Various macroeconomic traits vary in definitive ways with impacts hitting the money market. In general recession carries with it huge downfall in production rates as functionalized by GDP, bankruptcies and unemployment indexes. Recession effects can be widespread with income levels going low with spending parameters highly affected. Bustling of economic indexes followed by decreased spending levels are counteracted by government bodies with specific macroeconomic … [Read more...]