What is a recession?
• Print • Email Share • THE No. 1 worry of U.S. businessmen is a “recession.” But the strange fact is that nobody seems to know exactly what a recession is….” target=”_blank”>Digg • function fbs_click() {u=location.href;t=document.title;window.open(‘http://www.facebook.com/sharer.php?u=’+encodeURIComponent(u)+’&t=’+encodeURIComponent(t),’sharer’,’toolbar=0,status=0,width=626,height=436′);return false;} html .fb_share_link { padding:2px 0 0 20px; height:16px; background:url(http://static.ak.fbcdn.net/images/share/facebook_share_icon.gif?0:26981) no-repeat top left; }” onclick=”return fbs_click()” target=”_blank” class=”fb_share_link”>Facebook • time:http://www.time.com/time/magazine/article/0,9171,819199,00.html Add to Mixx! Mixx • Permalink • Reprints • Related var ad = adFactory.getAd(88, 31); ad.setPosition(8) ad.
First, lets get to the definition of a recession and then I will give you some tips on how you could recession-proof your life. Defining Recession Well, technically, a recession is when the GDP or gross domestic product is showing two consecutive quarters of negative economic growth. While they are extremely unpleasant, recessions are a normal part of the business cycle and typically, well, last for six to eighteen months. What makes a recession noticeable to you and I is when it starts affecting our wallets. So how can you spot a recession before it comes? Well, there are a number of ways. First of all, the obvious way is to watch the Gross Domestic Product or GDP. You can find the numbers anywhere online; a good website like Briefing, Dismal, Microsoft. If there’s a sudden drop in the domestic product and production, there’s a chance a recession might be coming. But you have to be careful in making those assumptions. Do your homework first. Maybe something fishy is going on with gove
In economics, the term recession generally describes the reduction of a country’s gross domestic product (GDP) for at least two quarters. The usual dictionary definition is “a period of reduced economic activity”, a business cycle contraction. The U.S.-based National Bureau of Economic Research (NBER) defines economic recession as: “a significant decline in (the) economic activity spread across the economy, lasting more than a few months, normally visible in real GDP growth, real personal income, employment (non-farm payrolls), industrial production, and wholesale-retail sales. Attributes of recessions In macroeconomics, a recession is a decline in a country’s gross domestic product (GDP), or negative real economic growth, for two or more successive quarters of a year. An alternative, less accepted definition of recession is a downward trend in the rate of actual GDP growth as promoted by the business-cycle dating committee of the National Bureau of Economic Research.(1) That private o
A recession is a decrease of less than 10% in a country’s Gross Domestic Product (GDP). The decrease must last for more than one consecutive quarter of a year. The GDP is defined as the sum of private spending and government spending on goods, services, labor and investment. The terms recession and depression are often confused. It can be said that a recession is in general not as severe as a depression. A recession tends to resolve more quickly. Not everyone agrees on a specific definition for determining an economic recession, but most can point to several factors, which can cause a recession. Either significant drop in prices, or significant increases in prices can occur. A drop indicates that people may spend less money, thus the GDP is decreased. An increase in price may also reduce both private and public spending and thus decrease the GDP. In some ways, it is quite natural for countries to experience mild recessions. This is a built-in or endogenous factor of a society. Spending
