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During a recession what must happen to interest rates to spur economic growth?
Wiki User
∙ 7y ago
The government will lower them to decrease the portion of income allocated to mortgage repayments and allow people to spend more money at retail outlets, on holidays and other descretionary goods.
Wiki User
∙ 11y ago
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Define recession recovery and expansion?
Recession- A significant decline in activity regarding the economy. A recession usually declines such matters as employment, industrial production, real income, and wholesale-retail trade. A recession is measured in two consecutive terms of negative economic growth by the country's gross domestic product. Recovery- The period, after a recession, of growth due primarily to the utilization of economic capacity which became idle during the recession. Expansion- The period of economic growth after a recovery in which the increase of GDP is due to increases of productivity and addition of new economic capacity, rather than utilization of idle capacity.
What term means a temporary decline in economic activity or prosperity?
A recession is a modest downturn in the level of economic activity. Technically, this is indicated by two consecutive quarters of negative economic growth by the GDP.
What are the four stages of the economic cycle and what do they entail?
recession decreasing growth economic general slowdown
Was the 2008 economic crisis a depression or recession?
The 2008 United States economic downturn was classified as a recession. A recession is defined as negative GDP growth for 2 or more consecutive quarters. In 2009 there was 3 quarters of negative growth before positive GDP began.
Which economic term describes a period of slow economic growth that also has inflation?
Recession
What happens to the economy during a recession?
An Economic Recession is a period of economic contraction (The Growth Rate shrinks and becomes stagnant)
Define recession recovery and expansion?
Recession- A significant decline in activity regarding the economy. A recession usually declines such matters as employment, industrial production, real income, and wholesale-retail trade. A recession is measured in two consecutive terms of negative economic growth by the country's gross domestic product. Recovery- The period, after a recession, of growth due primarily to the utilization of economic capacity which became idle during the recession. Expansion- The period of economic growth after a recovery in which the increase of GDP is due to increases of productivity and addition of new economic capacity, rather than utilization of idle capacity.
What term means a temporary decline in economic activity or prosperity?
A recession is a modest downturn in the level of economic activity. Technically, this is indicated by two consecutive quarters of negative economic growth by the GDP.
What are the four stages of the economic cycle and what do they entail?
recession decreasing growth economic general slowdown
Contraction (business cycle)?
economic growth weakens and becomes a recession
What stagnates during a recession?
growth, industry.
Which economic term describes a period of slow economic growth that also has inflation?
Recession
Was the 2008 economic crisis a depression or recession?
The 2008 United States economic downturn was classified as a recession. A recession is defined as negative GDP growth for 2 or more consecutive quarters. In 2009 there was 3 quarters of negative growth before positive GDP began.
The recurrence of periods of growth and recession in a nations economic activity?
business cycle
Which statement is true about the recession?
The technical indicator of a recession are 2 consecutive quarters of a negative economic growth as measured by a country's GDP is a true statement about recession.
What is the term for economic growth after a depression or recession?
Nothing. There is no such thing. Probably a war will ensue.
Why would a government choose to spend more money than it collects in taxes during a recession or a depression?
Spending increases demand and can encourage economic growth.
