Question

Think back to your home town (or a town that you know well), and write about what your town was like 5-6 years before the Great Recession of 2008, what occurred during the recession and what it is like today. Make note of economic activity, town budget issues, conditions in the community, and issues that have affected your friends and your family. Compare and contrast these time periods.

Answer 1

Before the Great Recession of 2008, the consumption level in the community were high, people in the town were easily getting jobs, Some people were also investing their money and inflation rate in the nation was positive and high as demand levels were high.

However, during the time of 2008 recession everything reversed. People were fired form their jobs which led to fall in the income level of the town and consumption level of the entire nation declined. People had no money to save and invest. Some were finding hard to meet their basic needs especially those who were unemployed. The inflation rate also declined as demand level was low in the town. Retailers were not finding customers to sell their product in the market.

Today when the economy is operating near its full employment level, it has been observed that conditions are getting close to what they were earlier. Though it is yet to achieve the equilibrium observed before the Great Recession, however, consumption level has increased, people are getting their jobs back, inflation rate has increased.