ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -When an economy is recovering from a recession, it is in the expansion phase of the business cycle, but it is not experiencing economic growth. Economic growth occurs when the potential and actual output of a nation increases over time.

Detailed explanation-2: -Economic recovery is the business cycle stage following a recession that is characterized by a sustained period of improving business activity. Normally, during an economic recovery, gross domestic product (GDP) grows, incomes rise, and unemployment falls as the economy rebounds.

Detailed explanation-3: -The recovery phase is said to be the period between the previous trough and the time when the economy achieves its previous peak level of real GDP. The “expansion” phase is from that point until the following peak.

Detailed explanation-4: -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-5: -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.