The business community often refers to a recession as a period of two consecutive quarters of decline in real GDP. This will generally follow the identification scheme of the Business-Cycle Dating Committee, but may not always. The Committee also considers the depth of the decline, and uses more indicators than just real GDP. However, a period of six months of declining real GDP will generally be classified as a recession.
There are a few things to notice about the definition of a recession. First, it is not a slowing of growth of GDP. The Committee puts it this way: “It’s more accurate to say that a recession – the way we use the word – is a period of diminishing economic activity rather than diminished activity.”
IF you know anyone who is saying that we are in a recession - show them this article and point out that it is impossible since we are experiencing GROWTH!
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