ANSWERS: 4
  • A recession is a significant decline in general economic activity extending over a period of time. Anything can cause a recession, right down to mere psychology - if people stop working businesses lose money and people are unable to buy things - the economy collapses.
  • A recession is a contraction in enconomic activity. It is defined as a decline in GDP (Gross Domestic Product - the value of all of the goods and services produced in the country within a given time) for two consecutive quarters. They can be caused by political and social unrest, instability, and upheaval. They can be caused when consumer spending retracts, often due to inflation outpacing wage increases. "The precise causes of recession are the subject of fierce debate among academics and policy makers although most would agree that recessions are caused by some combination of endogenous cyclical forces and exogenous shocks. For example, Keynesian economists and Real business cycle theorists would all disagree about the precise cause of the business cycle breakdown, but most would agree that purely exogenous factors like the price of oil, weather conditions, or a war could by themselves cause a temporary recession, or, conversely, short term economic growth.Keynes himself, however, pointed out that when interest rates get too little -- below about 2% -- than people no longer have an incentive to save, preferring to hold money for what he called transactions demands. If there are no savings, banks get no money with which to make loans, and it is is drying up of savings -- and loans -- that caused the regular business cycle to break down, according to Keynes. Austrian school economists hold that it is an inflation of the money supply that causes modern recessions and that recessions are positive forces in-so-much that they are the market's natural mechanism of undoing the misallocation of resources present during the boom or inflationary phase. Most monetarists believe that the cause of most recessions in the United States is this mishandling of the money supply, while extreme changes in the structure of the economy are responsible for very few." http://en.wikipedia.org/wiki/Recession
  • politcal stability in africa yet recession? how come
  • 2-28-2017 First you have to have paper money. Second you need a fad on which people can spend their paper money. Tulip bulbs, for instance. People have plenty of money and they bid the prices of tulip bulbs up to fantastic amounts. Then one day somebody says "Fagawdsake, it's only a stupid flower. It's not actually worth anything." And everybody realizes they have done a stupid thing and the party is over and the economy has to suffer while it works off all that malinvestment. And that is called "recession". It starts with counterfeit money.

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