The US govt. classifies a recession as 2 back to back quarters of negative GDP growth.
explain who loses from inflation and who loses from unemplyment
the real interest rate equals nominal interest rate minus inflation rate. In the situation the inflation rate increase and the nominal interest rate remains unchanged, therefore the real interest rate must decrease.
Basiclly, items are much more expensive now than in 1933 because of the recession.
Inflation causes people to save on everything. This makes commerce to sell less. Selling less causes unemployment. Unemployment and low consumption cause recession. No inflation implies on high consumption which must be controlled as well, but is much better than inflation and recession.
recession..A+
explain who loses from inflation and who loses from unemplyment
the real interest rate equals nominal interest rate minus inflation rate. In the situation the inflation rate increase and the nominal interest rate remains unchanged, therefore the real interest rate must decrease.
Basiclly, items are much more expensive now than in 1933 because of the recession.
Inflation causes people to save on everything. This makes commerce to sell less. Selling less causes unemployment. Unemployment and low consumption cause recession. No inflation implies on high consumption which must be controlled as well, but is much better than inflation and recession.
recession..A+
The question is incomplete.
It means that they are getting less money for deferring expenditure and saving instead. However, it is not the low nominal interest rates which matter but what the "real" interest rates are. This is the difference between the nominal interest rate and the rate of inflation. An interest rate of 2% when inflation is 0% is good news for savers but an inflation rate even as high as 10% is bad news if inflation is higher than 10%.
Inflationary pressure is when the price of things in general increase at a higher rate than wages, thus causing a financial strain.
There are many reasons why this might be the case; one of the simplest is inflation (meaning increase in how much things cost). If the rate of inflation is higher than the rate of increase in income, then you have more money but it buys less.
A recession is defined as a period of general economic decline; specifically, a decline in the country's GDP (Gross Domestic Product) for two or more consecutive quarters. During a recession, the country's liquidity is not at its best. Companies cannot easily raise fresh capital for expansion of their business. Maintaining customer base and profit would be the main aim for companies during a recession. During a recession the company would do either or both of the following: 1. reduce unnecessary expenditure (cost optimization) and/or 2. reduce unnecessary work force (resource optimization) As a result of these two steps, the number of employees in the company may come down. resulting in unemployment. Similarly, the company would not be in a position to expand its operations. Hence the number of fresh employment positions that would be created by the company would also take a hit. This would also cause unemployment.
The Swedish currency will appreciate against the US dollar.
I think you're referring to a so called Running Inflation. Check the link for more information.