Q. Match List I with List II and select the correct answer using the codes given below the Lists :
|
List I
|
List II
|
|
I. Boom
|
(A) Business activity at high level with increasing income, output and employment at macro level
|
|
II. Recession
|
(B) Gradual fall of income, output and employment with business activity in a low gear
|
|
III. Depression
|
(C) Unprecedented level of under employment and unemployment, drastic fall in income, output and employment
|
|
IV. Recovery
|
(D) Steady rise in the general level of prices, income, output and employment
|
Codes:
Answer:
I-A, II-B, III-C, IV-D
Notes: • An economic boom is the expansion and peak phases of the business cycle. It's also known as an upswing, upturn, and a growth period. During a boom, key economic indicators will rise. Gross domestic product, which measures a nation's economic output, increases.
• Economic recession is a period of general economic decline and is typically accompanied by a drop in the stock market, an increase in unemployment, and a decline in the housing market. Generally, a recession is less severe than a depression.
• In economics, a depression is a sustained, long-term downturn in economic activity in one or more economies. It is a more severe economic downturn than a recession, which is a slowdown in economic activity over the course of a normal business cycle.
• Depressions are characterized by their length, by abnormally large increases in unemployment, falls in the availability of credit, shrinking output as buyers dry up and suppliers cut back on production and investment, more bankruptcies including sovereign debt defaults, significantly reduced amounts of trade and commerce (especially international trade), as well as highly volatile relative currency value fluctuations (often due to currency devaluations). Price deflation, financial crises and bank failures are also common elements of a depression that do not normally occur during a recession.
• An economic recovery is the phase of the business cycle following a recession, during which an economy regains and exceeds peak employment and output levels achieved prior to downturn.