Economic Effects Of The Great Recession

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Recession is a period of activity wherein there is a slowdown in the growth of the economy. Recession is a downward trend in the business cycle, which is different from economic prosperity, economic depression, and economic recovery, is a decline in production and employment which is experienced for a long time. The recession is also defined as the reduced demand for services, wherein there is a reduction in different types of services and really affects in the growth of the gross domestic product rate or the GDP rate. The inadequate goods and supply really affect the economy by having a scarcity and limited supplies of goods. The word “recession” refers to a period of economic activity is characterized by negative growth in the economy, which…show more content…
The big negative effect of the recession is the economic shock that led to a sharp increase of unemployment rates in several countries and many young and prime age workers and even older workers are affected by it. The evolution of GDP or Gross Domestic Product rates really affects every individual and the GDP rates are very unprecedented and had a negative effect in many countries over the past decades. The labor market is a place where workers and employees interact with each other and the labor market institution also affects the functioning of the labor markets in terms of the unemployment and demand and supply of labour in different countries. There is a great need for economic growth by having the “one size fits all” character, which refers to the improvement of employment rates and improvement of labor markets and GDP (Van Ours,…show more content…
Scarcity is also a cause and an economic problem that arises because people have unlimited wants but resources are limited and the scarcity in goods and supplies really affects the production and distribution of food and necessities because there are only limited supplies of things that can be allotted and allocated in a particular place. Another cause was the reduced demand for service, wherein there are limited services offered in a particular country. Also, another cause was the stock market decline or the stock market downturn, which affects the stock market and the exchange market. (Van Ours,

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