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Chapter 16: In the News Wires in your Chapter 16 text, discuss why it takes so...

Chapter 16: In the News Wires in your Chapter 16 text, discuss why it takes so long to recognize that a recession has begun.

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Recession refers to the decline in GDP for two consecutive quarters. it is marked by the fall in the economic activities. Furthermore, consumer confidence declines, and unemployment rate shoots up.

These data are made available after some interval of time, thus, it takes so long to recognize that a recession has began. Government can not take up expansionary policy without knowing exact nature of recession. Recession is reversal of economic activities, it is movement from peak to trough while boom is movement from trough to peak. Recession might last for few months to over a year.

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