¶ … Causes of Recessions: Comparison and Contrasting of Theories that Explain the Causes of Recessions
The Causes of Recessions
A recession can be defined as two or more consecutive quarters of declines in economic activity, normally indicated by changes in household income, industrial production, real gross domestic product (GDP), employment, and wholesale retrial sales. According to Knoop (2010), a recession is usually characterized by a drop in the stock market, a decline in housing prices, increased rates of unemployment, business contractions, and consecutive declines in the GDP.
Some triggers of full blown recessions may include inflation, supply and demand shocks, financial crises and exchange rate fluctuations that affect international trade. However, Knoop (2010) states that economists often rely on business cycle data to study macroeconomic relationships that may point to a recession. Business cycles, which are the expansions and contractions in the levels of economic activities, often have peaks and troughs that can be easily predicted using macroeconomic variables. For instance, pro-cyclical variables in business cycles often fall as the GDP falls and rise as it rises. These include investment, employment and consumption. On the other hand, counter-cyclical variables, such as unemployment, are negatively...
In terms of product line the similarities are only identified in terms of a large business segment namely food production industry. The business line of Dean Foods is milk and dairy and Kellogg is focused on cereals and related processed foods. Seaboard and Tyson has similarities in their business segment in relation to meet processing of pork. However Seaboard is pursuing a diversified portfolio in relation to wheat, sugar,
Edgar Hoover, makes public its continuing investigation into the activities of black nationalist organizations, singling out the Black Panther Party in particular, Hoover viewing the group as a national security threat. January 05, 1970 Blacks Move Out of Inner Cities: The Bureau of Census statistics show as the quality of life in poverty-stricken urban communities worsens, a continuous stream of middle-class blacks escape to higher-income neighborhoods and suburbs. February 13, 1970 First Black
Running head: The COVID- Slowdown and the Global Financial Meltdown of 2008 1The COVID-19 Slowdown and the Global Financial Meltdown of 2008 14The COVID-19 Slowdown and the Global Financial Meltdown of 2008Coronavirus virus, commonly known as COVID-19, has caused the world\\\'s greatest fear since the 2008 global financial crisis. With its rapid transmission rate, the World Health Organization announced that it had surpassed the epidemic situation to a pandemic. The
Depression V Recession The Great Recession of 2009, which in economic terms lasted two quarters but for many people stretched out quite a bit longer, was billed as the worst economic event since the Great Depression. This provides us with an opportunity to examine the two events, their respective time periods, and what sort of similarities and differences we can determined between them. The 1920s were known as the roaring twenties, and
It was not until the subsequent eight months that the revisions in the GDP data which revealed declining real GDP for the first, second, and also the third quarters of the year 2001." ("NBER's Recession Dating Procedure," 2003) the graphs showing Quarterly real GDP, Real Personal Income less Transfers and Payroll Employment is stated in Exhibit -I, Exhibit -II, and Exhibit -III repectively. ("NBER's Recession Dating Procedure," 2003) VI. Economically
Allocation During a recession, or any kind of economic downturn, IT budgets come under close scrutiny. Organizations want to make sure that they are making the most of their money and IT investments are often among the first to be examined for potential cuts. Furthermore, the way that IT costs are allocated also makes a substantial difference because of the way different systems account for value. For example, under a
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