What are some of the steps economies take to recover the market after the crash?
Following a recession, economic recovery is defined as a period of persistent improvement in corporate activity. As the economy recovers, GDP rises, earnings rise, and unemployment reduces.
During an economic recovery, the economy adapts to new conditions, including the factors that initially triggered the recession and the new policies and laws imposed by governments and central banks in reaction to the recession. Unemployed workers find new jobs, and defunct businesses are purchased up or divided up by others, repurposing labour, capital goods, and other productive resources that were formerly attached to businesses that collapsed and went out of business during the recession. Recovery is the process by which an economy recovers from its previous damage and prepares for fresh growth.
Not every period of slow or even negative growth qualifies as a recession. The most prevalent rule of thumb in the United States is that a recession occurs when GDP growth is negative for two quarters in a row.
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