ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -An economic recovery occurs after a recession as the economy adjusts and recovers some of the gains lost during the recession.

Detailed explanation-2: -A period of recovery from a recession is known as economic recovery. Economic recovery often follows a “V-shaped” pattern in which the economy rapidly contracts during a recession or depression and then rapidly expands during the recovery period.

Detailed explanation-3: -The NBER defines a recession as a period between a peak and a trough in the business cycle where there is a significant decline in economic activity spread across the economy that can last from a few months to more than a year.

Detailed explanation-4: -A: Recessions and expansions refer to the direction of change in economic activity, not its level. The interval between the peak and the trough designates a recession, a period when economic activity is contracting. The subsequent period designates an expansion when economic activity is increasing.