Why have recessions become rarer and shorter in length in recent years?

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Expert Solution

The recession occurs an economy experience fall in economic activities thus causing contraction in business cycle. U.S. has experienced nearly 47 recessions since the Articles of Confederation. Although the recessions are like natural disasters that are unavoidable and inevitable but when the economy is prepared smartly they can certainly shorter the length and it's impact. In the recent years recessions become rarer and shorter in length because of the strong regulations and also countries often plans for a stimulus package to reinvigorate the nation and reverse or prevent a recession by boosting spending and employment. It helps in injecting the cash and confidence into households to avoid any stock market crash crisis. It provides the liquidity cushions to firms and households for stimulating the economy. Moreover several acts such as Whistleblower Protection Act, Dodd-Frank Wall Street Reform & Consumer Protection Act have been passed for the protection of consumer and avoiding the recession

Rahul Sunny answered 1 year ago

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