Evaluate the strategies adopted by the government to help businesses to survive the recession

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Evaluate the strategies adopted by the government to help businesses to survive the recession

A recession is a decline in a country's gross domestic product (GDP) growth for two or more consecutive quarters of a year. A recession is preceded by several quarters of the slowing down of growth in GDP. An economy which grows over a period of time tends to slow down in growth as a part of the normal economic cycle. An economy typically expands for 6-10 years and tends to go into a recession for between about six months to 2 years. It normally takes place when consumers lose confidence in the growth of the economy and spend less. This leads to a decreased demand for goods and services, which in turn leads to a decrease in production, lay-offs and a sharp rise in unemployment. Investors spend less as they fear stocks values will fall and thus stock markets fall partly due to negative sentement.

Recessions are cyclical, as the economy works in peaks and troughs. When the economy became 'overheated', the recession was a natural way for certain aspects of the economy to 'cool off', or so to speak, e.g., inflation, the exchange