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Recession

April 27, 2019 by Investor

Recession
Recession is defined as the situation where the rate of GDP declines by 2 consecutive quarters. The issue with this particular definition is it makes themcomplicated to find that whether an economy is undergoing recession or not. The definition given here does not consider macroeconomic factors like for example unemployment.
According to the economists, other factors like for example, consumer confidence, industrial production, capacity application should be consideredwhile stating whether the recession is in a perfect place or not. The important economic variable for looking at is the rate of GDP, as it calculates the financial activity of the whole budget. If you find a repeated decline in the GDP, it is regarded as strong and powerful signal showing that recession is in its exact place.

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  6. Deficit – What is a Deficit?
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