An Economic Recession is a period of economic contraction (The Growth Rate shrinks and becomes stagnant)
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http://wiki.answers.com/Q/What_automatically_happens_during_a_recession" http://wiki.answers.com/Q/What_automatically_happens_during_a_recession"
During a recession, it is generally advisable to consider investing in safe assets such as government bonds, high-quality stocks, and diversified mutual funds. These investments can help protect your money during economic downturns and potentially provide long-term growth when the economy recovers.
Recessionary gap occurs because the nations gross domestic product is lower than it is at full employment. This often occurs when an economy is beginning a recession.
Bonds are not completely recession-proof investments, as their value can be affected by economic downturns. However, they are generally considered safer than stocks during a recession because they provide a fixed income stream and are less volatile.
the banks go bust, yea
The recession worsens into a depression.
Expansionary mode is the growth of the economy during a recession
it falls
The recession would continue & The economy would continue to suffer
Recession means the period of reduction in trade and commerce in the economy.
There´s a depression
deflicts are incurred during recession and surpluses during inflaions.
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Just the opposite happens. In a recession, unemployment increases and the demand for goods decreases.
Lowering tax rates during recession puts more money into consumer's pockets which they can then purchase additional goods and services. Resulting in a stronger economy and a lessening of effects from a recession.