Fiscal And Monetary Policy

... Impact Of Expansionary Fiscal And Monetary Policy On The New Zealand Economy Recession in economics is essentially a general slowdown in economic activity in a country over a sustained period of time. During recessions, many macroeconomic indicators vary in a similar way. Production as measured by Gross Domestic Product (GDP), employment, investment spending, household incomes and business profits all fall during recessions. The primary indicator for determining whether a country is in recession is by its GDP. Recession can be simply defined as two consecutive quarters of negative growth i.e. Negative GDP, thus based on an assessment by the New Zealand Treasury, New Zealand has officially been in recession since the second quarter of 2008. [2] Recession leads to expansionary fiscal policies by the Government accompanied by similar monetary policies by the respective Reserve (Central) Banks as is the case with New Zealand as well, where in an effort to stimulate

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