Demand Side Policies and Effects on Recession

Recessions are a normal part of the business cycle, but they can be very devastating to households. The economic meaning of a recession is two consecutive quarters of negative gross domestic product (GDP) growth. Other factors like unemployment, home sales, investment, and production are also considered. Recessions are declared by the National Bureau of Economic Research (NBER). Many recessions are shorter one year in duration and their impacts are minimal. Depressions are usually longer lasting and can be more economically destructive than recessions. In 2008, the world…