Question:The begining of Creat Recession 2007-2009? Could you discuss the
following: Declining real GDP, Rising Unemployment,...
Question
The begining of Creat Recession 2007-2009? Could you discuss the
following: Declining real GDP, Rising Unemployment,...
The begining of Creat Recession 2007-2009? Could you discuss the
following: Declining real GDP, Rising Unemployment, Falling
inflation rates, and declining wealth?
Great recession of 2007 -2009 was characterized by fall in real
GDP and employment opportunities. Sub-prime crisis led to the fall
in aggregate demand which caused undesirable outcomes in forms of
unemployment and fall in output.
Growth of GDP slipped from peak of 4.1 %. Investment activities
were negatively affected, Hence there were scant profit
expectations thereby business houses postponed decision of
investment. Downgrading investment reduced output and
employments.
Unemployment which was around 4.5 in 2007 rose to 9.5 % in
2009. Fall in aggregate demand decreased inflation rates. It is
estimated that over 30 % value of houses were lost during the
recession.