Accomplish Victory

2010 Words9 Pages
What is a recession? A recession is declared once the GDP is negative for two consecutive quarters or more, a few quarters before is actually the start of an economic downturn. GDP is defined as gross domestic product and that basically means the total value of goods the United States has produced, for the year. The first few signs of a recession are negative growth followed by a miniature positive growth. Because American citizens don’t have the money to spend they don’t spend and the consumer spending aspect of the economy takes a drastic downfall. Unemployment rates also have play in determining a recession (22). Proper money management and finances could bring an economy out of a recession. There are major flaws in the way…show more content…
Then depending on the person they could take years to pay off that one bill out of the other 20 that they have. So what I am saying here is that if many people do this then, the economy will inflate, causing the value of money to go down prices to go up and so on and so forth.
One of the hardest and most difficult economic recessions in history was accomplished using Keynesian economics by John Fredrick Kennedy. “Keynesian economics is a theory of total spending in the economy (called aggregate demand) and its effects on output and inflation. Although the term has been used (and abused) to describe many things over the years” there is six principal systems or beliefs that are what a Keynesian believes. (20) A Keynesian believes that total demand is inclined by a swarm of financial decisions public and private. The public decisions include, financial and economic policies. Nearly all Keynesians and monetarists believe that both financial and economic policies affect total demand. Secondly changes in total demand have their affect on output and on employment not on prices. Keynesians believe that it must get worse for it to get better. Also they believe that we live in the short run of things not in the long run. Keynes’s famous statement, “In the long run, we are all dead.” Thirdly Keynesians believe that prices, and more
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