The document discusses the recession in the United States, defining it as a contraction of GDP for at least two quarters. It then discusses the causes of recessions, including decreased consumer confidence leading to lower spending, production and higher unemployment. It also covers the subprime mortgage crisis in the U.S. and its role in the 2007-2008 recession, with many subprime borrowers defaulting as home prices fell. This caused losses for banks and helped spread the crisis globally.
3. They define recession as : “ significant decline in economic activity lasting more than a few months, which is normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales ”.
13. for years the prices of homes in the U.S. kept rising. for years the prices of homes in the U.S. kept rising. for years the prices of homes in the U.S. kept rising. for years the prices of homes in the U.S. kept rising. for years the prices of homes in the U.S. kept rising. Thus Result Overconsumption/ Extravagant spending by the consumer For years prices of homes in US kept rising
26. Government has 2 plans Fiscal Policies (By Govt.) Monetary Policies (By RBI) How it spends and collects money Supply of money in the country How to come out of recession ?
The United States has encountered 32 cycles of expansions and contractions, with an average of 17 months of contraction and 38 months of expansion. Below you will find a detail history of economic recession in the United States
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