How a slump in housing could produce such a deep national recession. Concept Introduction: Slump: Recession slows down business activities. The main reason for such a phenomenon is the lack of demand and low investment level. When the recession is for a longer duration it is known as depression or slump. Therefore, slump is the period in an economy when demand and production for goods and services decrease. Recovery after Slump: The recovery is done after slump is done as given below: There are several ways of bringing the economy back to normal level from recession. If the recession is specific to a sector, then bailout package by the government or the central bank is the best strategy. The other methods that work are inducing consumer confidence to spend more, increase in fiscal expenditure by government to increase income of the people and financial aids by foreign bank.

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Chapter 26, Problem 3BCQ

To determine

How a slump in housing could produce such a deep national recession.

Concept Introduction:

Slump: Recession slows down business activities. The main reason for such a phenomenon is the lack of demand and low investment level. When the recession is for a longer duration it is known as depression or slump. Therefore, slump is the period in an economy when demand and production for goods and services decrease.

Recovery after Slump: The recovery is done after slump is done as given below:
There are several ways of bringing the economy back to normal level from recession. If the recession is specific to a sector, then bailout package by the government or the central bank is the best strategy.

The other methods that work are inducing consumer confidence to spend more, increase in fiscal expenditure by government to increase income of the people and financial aids by foreign bank.

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