Explain the facts or economics rate, Macroeconomics

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Explain the facts or economics rate

Boom: The period leading up to the peak of the cycle when an overheating economy is experiencing high GDP growth and inflationary pressures driven by unsustainable demand. Speculative activity, which tends to grow in the boom period, is a factor that makes a boom unsustainable.

Recession: The part of the economic cycle when the depressed economy is experiencing negative economic growth. A collapse of aggregate demand brings about a recession.

Recovery: The period after a recession when the economy begins to experience steady GDP growth without important inflationary pressures.

Double dip recession: When an economy falls back into recession before it has properly recovered from the first recessionary 'dip'. A double dip recession can lead into a 'lost decade' of negative or stagnant economic growth.

 


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