The document compares the 2008 recession to the Great Depression of the 1930s. It discusses the causes of each event, including the housing bubble and subprime mortgage crisis that contributed to the 2008 recession. For the Great Depression, it mentions the 1929 stock market crash, bank failures, reduction in purchasing, American economic policies, and drought conditions as causes. Both events led to declines in GDP, increases in unemployment, and changes in prices - inflation during the recession and deflation during the depression. The document provides an overview of the key economic impacts of each historical downturn.

2. Akshay Anand

3. Deepika Misra

4. Karishma Jindal

6. During recessions, many macroeconomic indicators vary in a similar way.

7. Production, employment, investment spending, capacity utilization, household incomes and business profits all fall.

9. L-shaped recession W-shaped recession The early 1980s recessionn the United States is an example of a W-shaped recession. L-shaped recession occurred in Japan following the bursting of the Japanese asset price bubble in 1990.

10. The Housing Bubble Burst The Subprime Mortgage Fiasco RECESSION 2008 : Causes RECESSION 2008 : Causes Sky-High Price of Crude Oil and Refined Product Dollar Devaluation

12. Home Loans became cheap and demand increased.

13. Lending institutions and mortgage firms wanted to give loans to as many potential customers as possible.

14. People even under the NINJA category were given housing loans.

15. Overbuilding of houses led to decline in prices and refinancing became difficult.

17. Incentive is to sell the property quickly

18. Various institutions that hold the poorly performing debt obligations were forced to 'write down' the value of these assets.

20. Increase in demand (especially from China).

21. Increasing energy prices.

23. The bulk of crude oil purchases takes place in dollars.

24. Investments such as US Treasury bills and bonds become less attractive.

26. The 15-country Euro zone were defined as a shrinking economy for two consecutive quarters.

27. Decreased demand for exports and remittances slowed down the Asia-Pacific economy.

28. Fall in house prices and increase in unemployment in the UK economy .

31. Considered, by some economists, a rare and extreme form of recession

32. Characterized by abnormally large increases in unemployment, falls in the availability of credit and large number of bankruptcies

35. American Economic Policy with Europe

37. Dow Jones industrial average dropped over 12%.

38. Result of mass panic selling of stocks, causing prices to plummet .

39. Flood of sell orders provided stock prices to traders.

40. Stockholders lost more than $40 billion dollars.

43. Unemployed were unable to pay installments on their items, which were ultimately repossessed.

45. Charged a high tax for imports thereby leading to less trade between America and foreign countries.

47. Forced to sell their farms for no profit to themselves.

49. The U.S. entry into World War II led to much sharper increases in government purchases.

50. It ended the Great Depression.

52. GDP AND LENGTH OF RECESSION AND DEPRESSION

54. UNEMPLOYMENT

55. PRICES,INFLATION AND DEFLATION

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