The EzyEducation website uses cookies to help ensure we give you the best experience.
If you continue without changing your settings, we assume that you are happy to receive all cookies on the EzyEducation website.
Please refer to our Privacy and Cookies Statement to

find out more.

Continue

Economic recovery

When an economy grows after a period of contraction.

Often these types of recoveries are stimulated by government policies e.g. an interest rate cut, a batch of quantitatitve easing, cut in taxation or higher government spending. All these policies aim to move the economy back towards full employment. Below is a diagram which highlight the effects that these types of policies can have on the economy in an AD-AS framework.

 

Forgot your password?