trade cycle Flashcards
(4 cards)
1
Q
what is a recession
A
2 consecutive quarters of negative economic growth
2
Q
what is the difference between a reccesion and a depression
A
a depression is a prolonged slump where real GDP falls by more than 10% from its peak
3
Q
what are some characteristics of a boom
A
-unemployment is low
-increased consumption
-inflationary pressure
-investment tends to increase
4
Q
what are some possible causes of a recession
A
-external events
-tightening of macro policy
-fall in asset prices or supply of credit
-drop in confidence
