We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

Recession and Depression - Term Paper Example

Comments (0)
Summary
Running Head: RECESSION AND DEPRESSION Name: Tutor: Course: Date: University: This is a study that explores the concepts of recession and depression. It explains the definitions and the causes of recession and depression. In this study, factors such as inflation,tax rates,interest rates,increased debt and consumer perception of the economy have also been discussed…
Download full paper
GRAB THE BEST PAPER
Recession and Depression
Read TextPreview

Extract of sample
Recession and Depression

Download file to see previous pages... In times of recession, gross domestic product is negative and this is accompanied by a decrease in investment, and an increase in rates of unemployment (Schumpeter,1939). Recession normally occurs for a short period of time. Hansen (1941) noted that high rates of unemployment are witnessed during recession. His argument is that during this period, a large proportion of the population is unable to secure jobs. The reason behind this is a decline in profits made by firms and this hinders expansion thus fewer job opportunities. As a result, there are low living standards and individuals are faced with difficulties when it comes to catering for their basic needs. Poor standards of living are in most cases witnessed by those who depend on wages and salaries. Lack of employment cause insecurity and this discourages investors from risking their money by investing in any kind of a business. Due to the high rates of inflation during recession, there is reduction in investments. This is primarily because firms fear to set up investments because of the depreciating value of the currency. In the earlier stages of recession, there is a fall in productivity then productivity will increase as firms that are weaker close. Low investments by business firms mean a reduction in the amount of revenue from taxation of the businesses and individuals who could have been employed by investors. Government income will therefore reduce remarkably and there will be fewer funds to cater for the government expenditure. High interest rates during recession serve to discourage borrowing from banks. This will reduce the amount of money in circulation; inflation will therefore reduce. Recession causes a decline in the gross domestic product and this results to a decline in exports since the amount of goods being produced in the country is low. Recession erodes the confidence of consumers reducing the consumption rate. As a result, the recovery period will be lengthened. This occurs during severe recession periods. There are also increased individual and corporate debts. The prices of assets such as homes and financial assets also reduce significantly. There is an increase in the amount of government debts during recession. This is caused by a reduction in the amount of government revenue from taxation. Recession forces governments to borrow money from lending agencies such as the international monetary fund. The amounts of funds being generated from within the country are not sufficient to finance the activities of government institutions. Low productivity during the early stages of inflation will cause a reduction in the amount of products that are available for supply. This will lead to high demand for products and therefore prices will go up. Consumers will be forced to spend an extra amount of money to purchase goods. High prices may lead to inability to afford necessities. Business people will hoard goods causing scarcity of commodities in the market. In times of recession, there is high prevalence of inflation and as a result people will reduce the amount of money they spend on leisure and they will start saving more money than they are use to saving. People are forced to increase their budgets and spend more on commodities due to the high cost of living. The end of recession is marked by a decline in the rates of unemployment. At the end of this ...Download file to see next pagesRead More
Comments (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
The Great Recession 2008
The research highlights that the impacts of the crisis as diverse beyond the aggregate of the rising levels of unemployment and economic collapse, highlighting the differences in transmission channels, vulnerability of economies, and initial conditions, as well as the role played by government policy in dealing with the crisis.
12 Pages(3000 words)Term Paper
The Great Depression
According to the study conducted the Great Depression brought unprecedented changes to American life in a variety of its aspects: economic, social, political, domestic, cultural, etc. The Great Depression developed as a result of considerable disparities in the American societies as well as the uncontrolled speculation in the stock market.
8 Pages(2000 words)Term Paper
Issues That Lead to the Recession
Introduction In this paper I discuss recession and the current economy down turn. I will define recession and its impact on the business world. The options to challenge recession and to overcome the impediments are also discussed. My second area of discussion is about investments.
10 Pages(2500 words)Term Paper
Compare great depression with the last recession of 2008-2009
The great depression and the last recession of 2008-2009 are different in terms of their lasting periods, causes, and effects on employment and world trade. Lasting period: The great depression is one great economic disaster that ever happened in history, making it greater than the recession in the modern times.
6 Pages(1500 words)Term Paper
TheGreat Depression
The great depression has always been linked to the infamous calamitous crumple of New York stock market prices in 1929, a trend that continued steadily three years on.1 By the year 1932, stock market prices in the New York Stock exchange had declined to a meager 20% of their previous value in 1929.
6 Pages(1500 words)Term Paper
A Focus on the Different Economic Principles and Theories of John M. Keynes
This paper advances Keynes’s theory that the best way to ensure economic stability and growth is by active government intervention in the marketplace and monetary policy.
10 Pages(2500 words)Term Paper
Depression
Feeling upset once in a while is a common thing, but it becomes a medical condition if it becomes permanent. The causes of depression remain to be multiple, but the most commonly known causes are: alcohol or drugs, treatments for illnesses like cancer, problems with sleep.
4 Pages(1000 words)Term Paper
GREAT RECESSION/GREAT DEPRESSION
The measure of trend of these periodic fluctuations is measured in terms of the levels of employment and production. When the measure indicates a down trend, then it is referred to as recession. This downward trend causes a decline in the spending of households.
5 Pages(1250 words)Essay
Issues That Lead to the Recession
Rather, a recession is a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production, and wholesale-retail
10 Pages(2500 words)Term Paper
Econ 4020 reaction 12-13
out the fate of USA economy, this write-up finds it prudent to inject a visionary economic school of thought that defines how full employment can be achieved through redesigning government fiscal policies. Beginning the period just after the revolutionary war (1790) to date,
2 Pages(500 words)Term Paper
Let us find you another Term Paper on topic Recession and Depression for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us