pic Economics for all: Revised definition of recession

Saturday 20 September 2008

Revised definition of recession

The definition of a recession is debatable because of the way the r word is being used by the media. A rise in unemployment is a good signal that growth has fallen below its target level. The statistic unemployment is less likely to be revised. When gdp growth has fallen significantly below its target level it is a clear indicator that the economy is slowing and possibly going into a recession. So a better definition for recession.

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