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    Thread: What is an economic crisis?

    1. #21
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      A situation in which the economy of a country experiences a sudden downturn brought on by a financial crisis. An economy facing an economic crisis will most likely experience falling GDP, a drying up of liquidity and rising/falling prices due to inflation/deflation. An economic crisis can take the form of a recession or a depression. Also called economic crisis.
      Economic crisis can be defined as the wild fluctuations, outside the acceptable limits of change, in the prices or supplies in any markets of commodity or services, or factors of production.
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      What is an economic crisis?
      Economic crisis is a very bad situation for any country that may find themselves in such situation, During the crisis, GDP is typically declining, liquidity dries up, and property and stock market prices skyrocket, and this will also bring scarcity of food, no jobs, most importantly there wont be economy development, which means investors will be afraid to bring in their business.
      economic crisis doesn't just occur out of nowhere, this is some kind of deterioration problems that government somehow doesn't tackle, or natural disaster that comes very urgently, or it could also be caused by political instability in the country.


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      Could be expressed as an acclimated unsteadiness, outside the agree limits of change, in the prices or supplies in any markets of commodity or services, or representation of production. Could be precised as a circumstances that develops unexpectedly in the operation of the financial statements prepared it's sub-components and attack the operation of the system in a notable negative manner.
      Economic crisis experienced in national economics are mainly a product of negative repercussions in the economical and political cycles and configuration. But it could be stated that economic crisis are a general outcoms of macro economical instability.
      It also refer to a moment of difficulty, sudden or an emergency in the life of a country, a society or a association, or in relations of enclosed in a separate countries.
      A situation in which the economy of a country experiences a sudden downturn brought on by a financial crisis.


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      The economic crisis is a term used in the economic field and refers to a drastic change in the economy. This rapid economic change leads to a decline in the exchange rate and higher prices for basic necessities. An economic crisis can hit a country if the economic changes cannot be stopped.

      Example:
      The first economic crisis hit Europe before the first world war which is often called the era of great depression, then the economic crisis occurred in the era of the oil boom in the 1970s, the third economic crisis occurred in 1997 which hit most of Asia and the last occurred in the United States in 2008.


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