The Economy During the Recent Recession

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Submitted By Jomarie23
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The Economy During The Recent Recession
Joanne Cartier
Mr. Fant
ECO 100
March 15, 2013

A recession is defined as a decline in a country’s GDP (gross domestic product) or when the economic growth in negative, two or more consecutive quarters. The state of the economy during the most recent recession was the worst since the Great Depression. In 2008-2009, the economy decreased within five quarters, including four quarters consecutively. Two quarters showed a decrease more than 5% and Q2 in 2008 dropped 8.9%. This was the lowest drop in a recession since the Great Depression. In Q3 2009, the recent recession ended, because of economic stimulus spending. The recent recession was the longest since the Depression, lasting 18 months.
The recession officially started in late 2007 to mid-2009. The Economic Security Index determined the impact of the recession by developing a measurement tool based on government economic data. The tool showed that due to the decline in income, increase in medical spending or both, Americans experienced a financial loss of 25 percent or greater. Southern states showed the worst economic losses from 2008-2010. Researchers found various reasons linked to these states hardship such as, poverty rates, the amount college graduates and unemployment rates. During the last recession, the national unemployment rate was at 5.0 percent making it the lowest in 2.5 years. From December 2007- June 2009, employment decline was the greatest of any recession of recent decades. In most cases, industries producing goods experienced the largest decline in employment during recessions. As stated by the Job Opening and Labor Turnover Survey and Current Employment Statics, during December 2007- June 2009, both construction and manufacturing experienced a decline of employment of 13.7 and 10.0 percent, their greatest decline in employment of the…...

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