Economics Assignment on Great Recession
Added on 2020-04-07
16 Pages3233 Words183 Views
Running head: ECONOMICS ASSIGNMENT Economics AssignmentName of the StudentName of the UniversityAuthor Note
1ECONOMICS ASSIGMENT Executive SummaryThe economy of the United States of America remained as the most influential economy in theglobal economic scenario, with significant strategic and decision-making power across theworld. The economy, otherwise showing an impressive growth trend, experienced one massivejolt in 2007-2008, with the initiation of the Great Recession. The recession, primarily caused dueto the bursting of the housing market bubble and an accompanying stock market crash, had longterm adverse effects on the country as well as the global economic scenario, as the repercussionswere borne by almost all the leading as well as the developing economies of the world. Therewere several other causal phenomena including the bankruptcy of the eminent investment banks,including the Lehman Brothers and the dumping activities of the then growing economy ofChina, which also contributed to the recessionary pressure on the economy of the USA. Theessay tries to analyze the causes of the Great Recession, which occurred in the USA during2007-2009 and discusses the implications of the phenomenon on the economy of the USA.
2ECONOMICS ASSIGMENT Introduction By the term “economy”, the overall condition of a geographical area, in terms of theproduction and consumption of goods and services within a particular span of time, is meant,with the productive activities being measured mostly in monetary terms. The economy of acountry is inherently supposed to be dynamic, with the dynamism being created by theinteraction of the supply and demand forces and other crucial economic indicators, which in turncauses short term as well as long term fluctuations in the economy of the country (Mian and Sufi2015). The mutual interactions of these economic indicators and their fluctuations, often leads todeviations from the economic equilibrium, thereby giving rise to abnormal situations in theeconomy which can be short spanned or continue to persist for long, depending upon the natureand magnitude of the fluctuation. One of the most significant of such situations is recession,which means an overall decline and stagnating of the productive and economic activities of acountry for considerable period, thereby having considerable implications on the economy of theconcerned country. The essay tries to discuss the occurrence of one such phenomenon, the GreatRecession, which had its initiation in 2007-08, in the USA and left a long-term impression on theeconomy of the country as well as the global economy as a whole. The main objective of theessay is to find out and analyze the primary causes of this Great Recession of the USA and itsimpact on the economy, providing explanations of these causes, in terms of economic concepts(Giuliano and Spilimbergo 2013).
3ECONOMICS ASSIGMENT Recession As discussed above, the temporary slowdown of an economy, in terms of its productionactivities, trade dynamics, industrial conditions and a lessened confidence of the people over themonetary and stock markets of the economy, can be termed as a recession. The slowing down ofthe overall economic growth of the country can be seen from the poor performances of the samein different economic indicators, especially Real GDP and Real GDP per-capita growth rates,which decline strikingly during that period (Gabisch and Lorenz 2013). An economy, by itsinherent dynamic nature, undergoes continuous changes, the rough pattern of which can beexplained with the help of the concept of the Business Cycle, which is discussed as follows: Figure 1: Business Cycle in an Economy(Source: As created by author)
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents
Economics for Managers : Assignmentlg...
|12
|2843
|303
Economics for Manager | Assignmentlg...
|13
|2985
|178
Global Financial Crisis Essaylg...
|10
|2717
|29
Great Recession in USA Assignmentlg...
|13
|2830
|156
Economic Performance of Japanlg...
|16
|3358
|70
Macroeconomic Analysis of Australia: Real GDP, Inflation, Unemployment, Business Cycle, Net Exports and Exchange Rateslg...
|12
|4372
|275