Shapes of recovery

Define economic revcovery.

Economic recovery is the business cycle stage following a recession that is characterized by a sustained period of improving business activity.

What are the different types of recovery?

-Z shaped

-V shaped

-U shaped

-W shaped

-L shaped

-K shaped.

Define Z shaped recovery.

Z shape forms when the recovery surpasses the already exisiting level of growth.

This is the best case scenario after a recession. The growth trend line rises sharply, more than it fell and assumes the usual levels afterwards.

Define V shaped recovery.

Recovery shows no betterment than previous growth.

-No permanent damage.

-Recovery shows that downfall was temporary.

-This is the second best scenario.

-No jobs are lost. No harm is done.

Define U shaped recovery.

Economy struggles to get back on its path. A lot of time is required for economy to recover.

-Unemployment persists for longer period of time.

W shaped recovery.

Falls down on the path of recovery and then again gets back up.

It is a dangerous creature. Just when it seems like normalcy has been achieved, the growth line falls before rising again.

Jobs are lost in the process.

L shaped recovery.

Permanent loss of production capacity.

Just as a man with with vices plummets to the utter depths of hellfire, never to rise back again, in this case the recovery growth line ,never really attains it former state. It stays down for years.

K shaped recovery.

Some parts of the economy recover and some stagnate and do not recover.