Scientifically speaking, the impact of the recession: a decline in gross domestic product for two consecutive quarters. The gross domestic product or GDP is the value of the services of the past and finished products in a given year. The properties have been completed, when converted into other assets. And are valued at fair value, and if there is a recession, the volume of goods and services falls more or less quickly.
The decreaseThe gross domestic product also has an impact on employment, real income, industrial production and sales in the retail segment of the market and the general state of the economy of a country.
There are many factors that make the economy into recession and inflation is one of the most important factors leading to the acceleration of this phenomenon. Inflation is an economic situation where prices of goods and servicesincrease significantly during a period of time. When inflation is high, the percentage of goods and services that money can buy even lower.
In general, inflation could occur, due to high energy costs, rising production costs and the national debt. If the reduction in the price levels in the rich high, people tend to be more of what they consume and the limitation of basic needs. Save moreMoney and ensuring that reduces the GDP, if you start spending cuts to reduce costs. For this reason, companies sell less and cut costs by firing people. The level of unemployment is rising and then the recession, however.
There are several important factors that could push the economy into recession, the credit crunch or the lack of financing options that fall in house prices is strongly linked to the credit crisis andThe lack of mortgages, the collapse of confidence in the financial sector, which is in a weak sense of trust between the real economy.
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