Recession and Expansions - Common systoms of a biz cyclce

10 important questions on Recession and Expansions - Common systoms of a biz cyclce

What happens to unemployment during a recession?

During a recession, unemployment lags the recovery. Hiring may be cautious even post-recovery.

How do real wages change during an economic recovery?

Wages grow more slowly for those employed as companies recover from losses.

What often happens to promotions and bonuses during economic downturns?

Promotions and bonuses are often deferred as companies cut costs.
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What challenges do new labor market entrants face in a recession?

Graduate job seekers face difficulties due to reduced hiring from companies.

How is the production of durable goods affected by the economy?

Production is more volatile than services and non-durable goods, sensitive to economic cycles.

What happens to big purchases during a recession?

Big purchases drop sharply as people try to save money and avoid expenses.

How does the inflation rate behave during recessions?

During recessions, demand decreases, leading to lower inflation or even deflation.

What occurs to inflation during economic expansions?

Inflation usually rises due to increased demand, spending, and investment.

Are inflation rates predictable?

Inflation rates are not always predictable, following atypical patterns during economic cycles.

What happens to hiring during and after a recession?

Companies are cautious in hiring, causing delays in job recovery after improvement.

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