Recession and its Ill Effect

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It has been 5 years now, but the world economy is still hovering over with ill effects of global economic recession. Different economist define recession in a different way but one common definition which can be derived is that recession is long lasting and prime reason for slowdown to economic activity(GDP). In terms of measuring the effects of recession, the broadest indicator of economic activity is real gross domestic product(GDP). Our following section will discuss how the economic activities in US has actually decreased since the beginning of market turmoil. Fall in Consumer Consumption Expenditure: Consumption Expenditure is the most integral component of GDP calculation and consumer consumption accounts for 70% of total consumption expenditure. Since the advent of recession, US Economy saw fall in consumer consumption expenditure which during third quarter of 2008 changed by -3.8% and -4.3% during last quarter of 2008. Consumption expedniture was not only felt in consumer consumption but also in durable, non-durable and service sector. Fall in Private Investment: Priva...

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