The great recession of 2008-2009

1. The great recession of
2008-2009
Nazakat Hussain
12991

2. Recession
• In economics, a recession is a business cycle contraction when there
is a general decline in economic activity. Recessions generally occur
when there is a widespread drop in spending (an adverse demand
shock)
• A recession generally lasts from 6 to 18 months, but can sometimes
last longer

3. The Great Recession 2008
In 2008 and 2009, the US economy experienced a financial crisis and
sever downturn in economic activity

4. Causes Of Recession 2008
• Low tax rate
• Subprime borrowers
• Variation in prices

5. The US labor markete lost 8.4 billion jobs
The typical working age household saw an income deadline of $2700
from 2007 to 2009
Nearly 4 million homes were foreclosed each year
2.5 million business closed
2008

6. House Price
• House price rose steadily from 1996 to 2006
• The house ownership rose to a record level of 68.6 % of household by
2007
• House price declined the people stop paying loans

7. GDP AND UNEMPLOYMENT
• GDP declined by 4.2 percent from the fourth quarter
Of 2007 to one quarter of 2009
The rate of unemployment rose from 4.4 to 10.0 in oct 2009
GDP
Unemployment

8. Steps by government
• Fed Cut of interest from 5.25 to zero
• Appropriated $700 Billion
• $787bn (£551bn) emergency stimulus package

9. 2015
• Unemployment rate fell to 5.0 percent
• GDP start growing 2.1 percent per year