Free Economics Assignment Essay Example

Recession affects every aspect of the country’s economic growth. Sometimes its effect is limited to one or more countries but sometimes recession affects the world economy. The World has faced various small and large recessions in the past. Various efforts have taken in order to overcome the recession and its effects. This paper intends to discuss the recession along with discussing who decides that recession has started and other related aspects of the area under discussion.
There is not any fixed definition of recession. The term, ‘Recession’ indicates towards a substantial decline in all economic activities of one or many nations. These activities include gross domestic product, employment, industrial production, retail trade, and many other economic activities. Such economic decline may continue for several months and even for years in worst circumstances. Several steps are taken by countries to improve the economic condition and overcome the recession.
A committee, named business cycle dating committee of The National Bureau of Economic Research (NBER), decides about the beginning as well as ending of the recession. There are several indicators that are taken into consideration by this body while deciding whether the economy is passing through a recession or not. The committee compiles and analyses various statistics. The committee officially suggests that the economic recession has started or ended once things start improving after taking all the economic indicators into account.
The United States of America and rest of the world witnessed a severe economic recession in the years 2207-08. The US has overcome this recession but economic sluggishness is clearly evident on the nation. Many other countries are also passing through difficult times after the recent recession. Economic downtrend is clearly visible in various significant economies of the world. Developed economies have sustained the recession, but developing nations are still struggling to overcome the recession and economic sluggishness due to the recession.
The recession of year 2007-08 was so severe that a number of economists called it a depression instead of a depression. A large number of People lost their jobs, companies started firing their employees, and people were compelled to stay at home for several months without any job. The old saying, which is very famous among economists, is that when someone else loses his job, it is a recession but when you lose your job, it is a depression. Various governments started cost cutting, a number of companies collapsed, a huge number of people lost their jobs, and several financial institutions were declared bankrupt during the recession of year 2007-098. In the light of these circumstances, it is not wrong to address it as a depression instead of a recession.
Governments of various nations have taken a number of measures and now the recession is over. The world economy has been consolidated because of the steps, taken by governments. This is the appropriate time to start investments in the market and investing at this time may bring good returns. There is a vacuum in the market and investments are highly required to give a strong boost to the economy. Various sectors including financial sector, manufacturing and retail sector need the investment and are ready to give attractive benefits to the investors.