Recession Term Paper:
Economic recession is the gradual and non-critical reduction of the production or the reduced tempo of the economic growth. The reduction of the production is characterized with the zero increase of the GNP or its gradual fall during the half of a year. Recession is one of the phases of the economic cycle, which comes after the economic boom and is followed by depression.
Recession generally leads to the fall of the indexes on the stock markets. It is naturally, that the economics of the one country depends directly on the other one, so the economic recession in the one country can cause the same problem in other countries and even cause a crisis of a big region of the world. Recession is also accompanied with other related problems which influence the financial well-being of the common people – unemployment. Recession is caused by numerous factors which can be predicted by the specialist. For example, the recession is caused because of the development of the country, generally the crisis of overproduction.
Economic recession is a part of a big cycle of economics which can not be omitted. When the company reaches the success and improves its condition to the high extent, it becomes obvious that such a growth can not last constantly. After the big boom there is a big fall. So, recession is the bridge between the boom and the depression or economic crisis and only smart and creative decisions of the government can change the situation for the better. Very often economic recession is used by the politicians who want to come to power. They accuse the government in the economic fall in spite of the fact that it is impossible to stop it, as it is a natural process.
Economic recession is a complicated and serious problem which touches upon everyone. The economic fall is a big problem for the financial background of an individual and the whole country.
The production falls, the unemployment increases and no one knows what to do. The student has a lucky chance to test his knowledge and critical thinking analyzing the economic recession problem for a term paper. The student should explain the meaning of the recession, present its type, cause and effect and the methods which can stop the recession or soften its negative impact on economics.
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