Economic Recessions Are Normal

An economic recession is normal because it is part of the business cycle. This usually happens after the economy recovers, expands and then slows down again which usually last for 2 to 4 consecutive quarters. Unlike the four seasons we experience every year namely spring, summer winter and fall, this does not happen annually. The last time we had to deal with this was 8 years ago and during the early 1980’s.

The indicators which the economic experts look at to tell if something is wrong include consumer spending, the unemployment rate, industrial production, real income and wholesale trade. To help stimulate the economy, the Federal Reserve lowers the interest rate.

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