Sample Thesis Paper
Economic analysts summarize all these factors and jot them into three Ds’ for a slowdown to become a recession. These three Ds’ includes
By duration it means that the slowdown period should be considerably long, depth means it should have a substantial decline in the economic activity and diffusion means that the slowdown effect should be visible on all the sectors of the economy rather than on just a single sector or region.
Usually all these events are recorded by the National Bureau of Economic Research NBER and every member of the committee must exchange their thoughts on the various aspects of this definition to label that particular affair as recession period.
However, Farago (2002) perceives that a recession occurs after a high point in the level of economic activity and ends as the economy reaches its trough. What is evident till now is that the economy runs in a cycle where it goes into expansion when the economics conditions are at its peak and consequently goes into recession if there are any abnormalities in the economy (Farago 2002).