4 ms·
Demand-driven recession means there is insufficient demand which leads to decreased production and a level of slack in economy (real GDP lower than potential GD
by zajio1am 4y ago
Demand-driven recession means there is insufficient demand which leads to decreased production and a level of slack in economy (real GDP lower than potential GDP), while unemployment is a manifestation of such slack.
If you have decline in GDP, but no unemployment, it may be due to supply issues, increase in friction and other factors (i.e. decline also of potential GDP).