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... the economy and it has some permanence. In the United States the Business Cycle Dating Committee at the National Bureau of Economic Research (NBER) is responsible for the dating of the US business cycle.2 The NBER describes the concept as follows: “a recession is a significant decline in economic ac ...
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... 3. Explain why unemployment rises quickly during a recessionary period. 4. How can the Fed’s Beige Book information help consumers understand the current economy? 5. Compare today’s recession to the Great Depression of 1929-1933 in terms of bank failures and the unemployment rate. What are the major ...
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...  On average the UK economy grows by around 2.5% a year, this growth rate is enough to double wealth in around 35 years. But the economy does not grow at a steady rate. The chart below shows growth rates over the last 3 years. The figures for 2008-9 are negative. During this period the economy shrun ...
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... • ECB adjusted the distribution of liquidity over the reserve maintenance period, providing liquidity earlier • used open market operations to steer their interest rate • adopted a fixed rate tender procedure with full allotment for all of its weekly main refinancing operations and its longer-term r ...
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Investment Review and Outlook - Boston Research and Management

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Recession

In economics, a recession is a business cycle contraction. It is a general slowdown in economic activity. Macroeconomic indicators such as GDP (gross domestic product), investment spending, capacity utilization, household income, business profits, and inflation fall, while bankruptcies and the unemployment rate rise.Recessions generally occur when there is a widespread drop in spending (an adverse demand shock). This may be triggered by various events, such as a financial crisis, an external trade shock, an adverse supply shock or the bursting of an economic bubble. Governments usually respond to recessions by adopting expansionary macroeconomic policies, such as increasing money supply, increasing government spending and decreasing taxation.
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