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What is a recession: Yahoo U 덧글 5 | 조회 1,354 | 2020-04-30 17:39:23

Business closures and layoffs across the U.S., along with a gross domestic product that turned negative for the first time since 2014, have raised concerns about the depth and length of the recession that the U.S. likely finds itself in amid the novel coronavirus.

One challenge with defining a recession: It can only be declared after data can confirm that there’s been one. As a result, the country may already be in recession that won’t be officially declared until months from now.

The r-word has raised a number of questions: what is a recession, who gets to define it, and how do we know if we are in one right now?

What is the definition of a recession?

A recession is generally perceived to be two consecutive quarters of negative growth in U.S. production, measured as real GDP. 

But the National Bureau of Economic Research, which has a “dating committee” dedicated to declaring recessions, makes it clear that there are other criteria that can constitute a recession. The committee looks for a “significant decline in economic activity” across an economy, which covers not just GDP but factors like real income and employment, as well as retail and manufacturing sales. Follow more information at  pgslot


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