This website uses cookies to ensure you have the best experience. Learn more

Analysing The Recent Economic Recession And Its Effects

1504 words - 7 pages

The business cycle is the short-run alternation between economic downturns and economic upturns (Investopedia n.d.). A recession is an economic downturn and happens in every country and some recessions are worse than others and the output of GDP and employment are falling farther and faster. The great depression lasted from 1929-1933 and was a deep prolonged downturn in the business cycle before a recovery/expansion of the business cycle occurred and GDP and employment started to rise (Krugman & Wells. 2012). The next recession lasted from 1981-1982 and was comparatively smaller than the first (Krugman & Wells. 2012). More recently in 2001 a slump in the economy was noted and was followed by the great rescission of 2007-2009 (Krugman & Wells. 2012). Recession is defined as a “period of at least two consecutive quarters (a quarter is three months) during which the total output of the economy shrinks” (Krugman & Wells. 2012). In the United States the National Bureau of Economic Research (NBER) is assigning the task of determining when a recession begins and the NBER looks at a variety of economic indicators such as employment and production (Krugman & Wells. 2012). Every business cycle recession has a negative impact on the economy the recession’s deferrer on the strength of the impact on the country. Consider the two charts for Figure 21-5 of the more recent recessions of 2001 and 2007. The Recession of 2001 did not last as long as the recession of 2007 and did not have as much of an economical hardship on the business cycle and as shown 2007 dipped greatly in industrial production. In the second chart it demonstrates a recession at the point the economy turns from expansion to recession or the business-cycle peak. Then in the chart once the recession starts to correct itself there is the point at which the economy turns from recession to expansion or the business-cycle trough (Krugman & Wells. 2012).
Circular Flow
"Supply creates its own demand." (Investopedia n.d.). Circular flow models depict how money flows through the economy and the models consist of households and business or workers’ wages and money flowing back to the business from purchases of product. An examples of the circular cash flow model is demonstrated in figure 21-6.
“Firms produce output and then pay income to households and households then use this income to buy goods expenditure” (Pettinger. n.d.).
Unemployment Rate & Labor Force Participation Rate
Labor force is the amount of people who are employed and currently have a job and the people who are unemployed and currently do not have a job (Krugman & Wells. 2012). The labor force participation rate is calculated with people sixteen years of age and older that are employed, while the unemployment rate is measured by the percent of the total number of people sixteen years of age and older who do not have a job (Krugman & Wells. 2012).
The United States assigns the Bureau of Labor Statistics (BLS) with the task of tracking...

Find Another Essay On Analysing the Recent Economic Recession and Its Effects

Incorporating Congestion Control in BGP considering its Economic & Policy Effects

1375 words - 6 pages this paper focuses on the inclusion of the alternate paths in the routing table, and proposing a congestion-control mechanism for better throughput and lower delay in the Internet. The paper also focuses on the economic and policy effects this change in BGP will have on the ISPs and gaming business owners. How will integrating congestion-control mechanisms in BGP make it a robust protocol and what will be the economic and policy implications and

Incorporating Congestion Control in BGP considering its Economic & Policy Effects

580 words - 3 pages observe the traffic pattern causing delay and packet loss. To observe the traffic pattern, simulate different BGP congestion scenarios between peer-peer, customer-ISP, and ISPs acting as transit for other ISPs. Secondly, implement the topology on ITGURU using its in-built BGP module. Once the simulation is done and the data is logged, analyze the various performance parameters like average end-to-end delay, average packet loss rate, and average

The 2008 Economic Recession

1308 words - 6 pages The 2008 Recession Between January 2008 and February 2010, employment fell by 8.8 million, the largest decline in American history. The 2008 Recession, which officially lasted from December 2007 to June 2009, began with the bursting of an 8 trillion dollar housing bubble. Job losses during the recession meant that family incomes dropped, poverty rose, and people all over the country were suffering. Things like this don’t just happen. Policy

The Causes and Effects of a Recession

3459 words - 14 pages unemployment rate is at 7.4 %. c) In the last three quarters GDP is growing with increasing pace in every quarter with currently at 0.8% growth in the recent quarter. However, whether it will be growing and sustained in the future is a matter of much subjective judgment. Many organizations are forecasting on the future economic outlook of UK. According to British Chamber of Commerce (2013) UK will surpass the pre-recession peak in 2014

Analysing The Recent Situation Of HIH

1367 words - 5 pages On March 15, 2001, Australia¡¯s second largest insurance company HIH collapsed and an application for its liquidation was submitted. It soon escalated into Australia¡¯s biggest corporate failure in June after the insurer¡¯s final tally of losses was estimated to be about $3 billion in Australia and almost $5 billion worldwide, very well above the early estimate of $1 billion . HIH¡¯s demise was mainly

The Economic Recession of 2008

2314 words - 9 pages Ever since the Recession of 2008, the process of acquiring employment has become extremely challenging and exhausting. After months of searching, a significant amount of job seekers are willing to accept any job offers that will allow them to put food on the tables. If you follow the United States’ economic recovery, you probably know that there are about 10.5 million unemployed Americans and constant debates about how to create more jobs. What

Recession and its Ill Effect

687 words - 3 pages It has been 5 years now, but the world economy is still hovering over with ill effects of global economic recession. Different economist define recession in a different way but one common definition which can be derived is that recession is long lasting and prime reason for slowdown to economic activity(GDP). In terms of measuring the effects of recession, the broadest indicator of economic activity is real gross domestic product(GDP). Our

The FED's Expansionary and Contractionary Monetary Policies During and After the Economic Recession

595 words - 2 pages exactly how much action is needed at any given time which is why there will always be questions/critics about the action taken. No matter what action the fed takes, it takes time to see the effects of expansionary or contractionary monetary policy on the general economy, which is why all of their decisions are based solely on anticipation of future economic conditions. Even as the recession draws to a close there will be more to come

The Internet: its effects and its future

5830 words - 23 pages Internet, its effects in our lives and the future of the Internet:The Internet is, quite literally, a network of networks. It is comprised of ten thousands of interconnected networks spanning the globe. The computers that form the Internet range from huge mainframes in research establishments to modest PCs in people's homes and offices. Despite the recent hype, the Internet is not a new phenomenon. Its roots lie in a collection of computers that

The Internet and Its Effects

2382 words - 10 pages The Internet and Its Effects The Internet was first developed in 1957 as a communication resource for the military Defense Unit. Since then the Internet remains to a service of communication that is now provided to all people with the access of a computer. Over the past several years the Internet has developed and expanded into an endless resource of information and knowledge. With billions of Internet users present in the world today, the

Recent economic trends in the Russian economy

1987 words - 8 pages observed a steady improvement in its economy after its dismal performance in the year 1998 thus bringing in a sense of stability and building investor confidence.The Russian stock market in 2001 did exceedingly well and achieved a growth rate only second highest to Argentina in the world. Besides the stock market, there were other economic indicators that showed positive trends in the year 2002. There was a 17.4% increase in real wages; inflation for

Similar Essays

What Eere The Effects Of The Central Bankers On The Recent Economic Crisis?

1546 words - 7 pages not fully help the economy back to its original states. Despite the fact that their actions were not a complete remedy, without the policies and actions of Ben Bernake, Mervyn King and Jean-Claude Trichet the world economy would be in an even worse state today. Therefore, it is safe to say that they saved us from one of the most dangerous economic crisis since the Great Depression in the 1930s. Works Cited Irwin, Neil. The Alchemists: Three

Dallas's Ban On Smoking: Brief Discussion About The Recent Ban On Smoking In Dallas Area Restaurants And Businesses In Early 2003. Discussion Of Health And Economic Effects

726 words - 3 pages the authority to regulate smoking in area restaurants and businesses at anytime to promote public health, regardless of the economic effects.The theory that smoking is hazardous to one's health has been researched for decades. Scientists have concluded that smoking is harmful to a smoker and the innocent bystander. Tobacco and its smoke can trigger cancer, asthma, and allergies. This research has led many people to stay away from tobacco and its

Global Warming And Its’ Economic Effects On Businesses And Consumers

1006 words - 5 pages operate, the business sectors the book focuses on are: building, construction, chemicals, electric power, extractives, finance, food and beverage, healthcare, information and communication technology, tourism, and lastly transportation. Grossman states, “Similarly, climate impacts, resource scarcity, and resulting changes in population migration may have broader systems-level effects, destabilizing countries and thus the political and socioeconomic

China Set To Cool Off Its Growth. An Essay About The Recent High Levels Of Economic Growth In China. Economics

638 words - 3 pages China set to cool off its Growth.China is experiencing large economic growth to the point where it may not be sustainable without equally large inflation. But any reduction in rate of Chinese economy's growth will have little effects on neighboring Asian economies due in part to the current and anticipated growth of both U.S. and Japanese economies anticipated. It appears that the Chinese government is trying to take preemptive, measures