Macroeconomics
4th Edition
ISBN: 9781464110375
Author: Paul Krugman, Robin Wells
Publisher: Worth Publishers
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Question
Chapter 6, Problem 7P
To determine
The characteristics of economic recession, its impact on the business cycle and the role of the government.
Concept Introduction:
Economic Recession: This period is the early stage of depression, economy is in the declining stage in this period and slowdown is seen in the stock market, household good market as well as there is increase in
Business Cycle: There are fluctuations, over a period in the economic activities of any country; these fluctuations are called as business cycles. These upswings and downswings are called as expansion and recession, at expansion phase the economy tends to grow in the real terms whereas in recession the economy tends to contract.
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