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In a crisis not caused by macroeconomic imbalances economists are uncertain whether a country should try to guard against recession or try to defend its currency. Why are these mutually exclusive and?
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What do economists use to determine if an economy is healthy or if it is in a recession or depression?
GDP
Is the US officially in a recession?
There is no universally recognized definition of 'recession.' Most (but not all) economists would agree that the current economic situation is at least a recession.
What is recesson?
A contraction of the Gross Domestic Product (GDP). Typically for a period of 2 quarters or more is when the economists start using the word recession.
Why do economists assert that economic recessions are actually beneficail to many homebuyers?
Economists assert that economic recessions are actually beneficial to many homebuyers because both home prices and mortgage interest rates tend to be lowest during recession.
When do economists believe it is the best time to purchase a house?
During a recession when unemployment is high and interest rates are low (assuming this is for plato) good luck
What do economists use to determine if an economy is healthy or if it is in a recession or depression?
GDP
Is the US officially in a recession?
There is no universally recognized definition of 'recession.' Most (but not all) economists would agree that the current economic situation is at least a recession.
What is recesson?
A contraction of the Gross Domestic Product (GDP). Typically for a period of 2 quarters or more is when the economists start using the word recession.
Why do economists assert that economic recessions are actually beneficail to many homebuyers?
Economists assert that economic recessions are actually beneficial to many homebuyers because both home prices and mortgage interest rates tend to be lowest during recession.
When do economists believe it is the best time to purchase a house?
During a recession when unemployment is high and interest rates are low (assuming this is for plato) good luck
Will the recession lasts till 2012?
Technically speaking we are not in a recession. According to the National Bureau of Economic Research the latest recession began in December 2007 and lasted 43 months. Some economists and financial forecasters feel there is a strong chance that the US will enter another recession (double dip) as early as sometime in 2012 due to the fallout of sovereign debt defaults and bank failures in Europe and another wave of foreclosures estimated to peak in August of 2012.
How did the great depression affect economists beliefs about the macroeconomy?
Instead of assuming that the macroeconomy would automatically recover from a recession, economists began to consider the possibility that modern market economies could fall into prolonged contractions and that government assistance would be necessary to pull them out.
Suppose the nation were in a recession with many people unemployed why would economists be happy to see firms begin to buy more capital goods?
it would indicate that they intented to expand production and hire new workers
In a recession Keynesian and New Keynesian economists believe that the inflexibility of wages and prices are the result of?
various things like staggered prices, menu-costs, coordination failures generating multiple equilibria (through the channels of expectations), etc.
What happens to banks during a recession?
In an economic recession, confidence in banking institutions often fail, causing unemployment which in turn causes a lack of demand for certain products. Citizens lack confidence about the economic future and thus do not buy homes. Investors lack confidence in the stocks of corporations and sell their shares causing huge losses. Government intervention can ease the effects of a recession, however, many economists are certain that at times too much government intervention only prolongs recessions. People out of work rely on unemployment benefits, so large ticket item purchases such as automobiles are postponed. In the US' Great Depression, some economists claim that President Roosevelt's remedies prolonged the recession. At that time, unemployment reached 25% of people seeking work.
Why is the stock market considered to be the leading indicator of economic change?
a leading indicator is a set of key variables that economists use to predict phase of a business cycle, and a stock market, typically, turns sharply downward before a recession begins.
What is the meaning of the word recession?
Recession means period of general economic decline, defined usually as a contraction in the GDP for six months (two consecutive quarters) or longer. Marked by high unemployment, stagnant wages, and fall in retail sales, a recession generally does not last longer than one year and is much milder than a depression. Although recessions are considered a normal part of a capitalist economy, there is no unanimity of economists on its causes.
