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What Is A Recession?

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Guest wrongmove

A recession is when your neighbour loses thier job.

A depression is when you lose yours.

Technically, a recession is defined by most central banks as "two consecutive quarters of negative growth". i.e. when the total size of an economy, measured by GDP, shrinks for at least half a year.

Edited by wrongmove

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What exactly is a recession?

What exactly is a depression?

Can I have the CBeebies explanations please.

a recession is two consecutive quarters of negative growth (currently growth is 0.6% IIRC and YoY 1.8%), so we are a long way short of even one quarter of negative growth.

A depression is when it this is really bad, so it's subjective

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the difference between a recession and a depression is the difference between a receding hairline and genuine slapheadedness.

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Recession: The BCDC Definition

The Business Cycle Dating Committee at the National Bureau of Economic Research (NBER) provides a better way to find out if there is a recession is taking place. This committee determines the amount of business activity in the economy by looking at things like employment, industrial production, real income and wholesale-retail sales. They define a recession as the time when business activity has reached its peak and starts to fall until the time when business activity bottoms out. When the business activity starts to rise again it’s called an expansionary period. By this definition, the average recession lasts about a year.

http://economics.about.com/cs/businesscycl...depressions.htm

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Also from the same site

The Difference

So how can we tell the difference between a recession and a depression? A good rule of thumb for determining the difference between a recession and a depression is to look at the changes in GNP. A depression is any economic downturn where real GDP declines by more than 10 percent. A recession is an economic downturn that is less severe.

By this yardstick, the last depression in the United States was from May 1937 to June 1938, where real GDP declined by 18.2 percent.

If we use this method then the Great Depression of the 1930s can be seen as two separate events: an incredibly severe depression lasting from August 1929 to March 1933 where real GDP declined by almost 33 percent, a period of recovery, then another less severe depression of 1937-38. The United States hasn’t had anything even close to a depression in the post-war period. The worst recession in the last 60 years was from November 1973 to March 1975, where real GDP fell by 4.9 percent. Countries such as Finland and Indonesia have suffered depressions in recent memory using this definition.

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What exactly is a recession?

What exactly is a depression?

Can I have the CBeebies explanations please.

SOME CHARACTERISTICS OF A RECESSION

1. Declining demand for output leading to higher levels of spare productive capacity

2· Contracting employment / rising unemployment as firms lay-off workers to control their costs

3· A sharp fall in business confidence & profits

4· A decrease in fixed capital investment spending because there is insufficient demand to justify new capital projects

5· De-stocking and heavy price discounting - this leads to lower inflation

6· Reduced inflationary pressure in the labour market as unemployment rises

7· Falling demand for imports

8· Increased government borrowing

That a yes then for 'this recession' that NuLabour's ignoring.

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My definition of a recession(only applicable to England) is when one of the contractors of the new Wembley Stadium can not pay its workers wages.

This must make us the laughing stock around the world.

So what's new folks??

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Recession is when manufacturing, retail and services sectors are in twice the worst state than they are now.

Hold on tight , its going to be a bad one !!!!!!

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A recession is when you can travel to work at 08:30 and be the only car on the road.

A recession is when we have to repay the debts incurred by the Labour Government and some bright spark re-invents the wheel and we do it all over again.

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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