IS CURACAO IN A RECESSION OR DEPRESSION,YOU BE THE JUDGE....

WHAT IS RECESSION AND DEPRESSION 

By: JJosepha News

Twitter.com/JJosephaNews

1.0 WHAT IS AN ECONOMIC RECESSION?

In macroeconomic terms, a recession refers to a significant decline in general economic activity in a country, region, or the entire world that goes on for more than two months.

Technical definition of recession are; normally; two (2) consecutive quarters of negative economic growth as measured by a country's Gross Domestic Product; (GDP).

1.2 We See An Economic Recession In:
1) Low employment level,
2) Low industrial production,
3) Low wholesale-retail trade; and
4) Low real income.

1.3 An Economic Recession Can Happen Because of:
1) External shocks e.g (wars),
2) Declines in the supply of key goods,
3) The economy own cyclical nature,
4) Attempt of firms to raise prices and
5) Oversupply.

2.0 WHAT IS AN ECONOMIC DEPRESSION?

An economic depression is much more severe than an economic recession, and its effects can be felt for years. In one of the most simplest perspective, an economic depression can be defined as a drastic economic downturn in which the Real Gross Domestic Product; (rGDP), falls by 10% or more. Therefore; getting through an economic depression can be a challenge for countries, consumers and businesses.

2.1 We See An Economic Depression in:

1) Falling prices,
2) Disasters in banking,
3) Bad trade,
4) Low manufacturing/production,
5) Low or little investment,
6) Tight credit,
7) High unemployment and
8) Rising bankruptcies

2.2 An Economic Depression Can Happen When These Things Occur Simultaneously:
1) Low demand,
2) Low number of businesses and investors producing,
3) Investment devaluation,
4) High unemployment and
5) Wages drop.


Thank you for asking your question on Ask Nina, Now what do you think; is Curacao in an:
(A) Economic Recession!
(B) Economic Depression!
(C) Neither!
(D) I still am not sure!

About Ask Nina

"Ask Nina" is an advice column founded, created and operated by Josefina Josepha under the pen name of "Nina". The advice column is managed by JJosepha News. The advice column’s mission is to impart compassionate, sound advice and incorporating expert advice sought from authorities, while delivering a layman’s approach with the straightforward style of a good friend. Have a question, need an answer, Ask Nina!

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