Types of Shape of Economic Recovery Economic recovery can ta | Dr. B R AMBEDKAR IAS ACADEMY
Types of Shape of Economic Recovery
Economic recovery can take many forms, which is depicted using alphabetic notations. For example, a Z-shaped recovery, V-shaped recovery, U-shaped recovery, elongated U-shaped recovery, W-shaped recovery and L-shaped recovery.
The alphabets generally denote the graph of growth rate, which resembles the shape of the letter.
The fundamental difference between the different kinds of recovery is the time taken for economic activity to normalize.
The time taken is often a factor of multiple things such as the depth of the economic crisis. e.g deeper the recession, longer is the time to get back to normal.
The other aspect of economic recovery includes the effect of pandemic on jobs and household incomes, and the kind of policy response taken by the government that determines how quickly economic growth will recover.
