10) Shapes of economic recovery

Question 1

Why is this in news ?

Answer 1

Due to economic crisis caused by COVID-19 and lockdown

Question 2

What is Z shaped recovery ?

Answer 2

Most optimistic scenario in which the economy quickly rises after an economic crash (look at the fig from google) . It makes up more than the losses and eventually settles down in the normal line

Question 3

What is a V shaped recovery ?

Answer 3

In this a rebound would bring in a sharp dip in economic activity matched by an equally brisk surge back to normalcy (google image)

Question 4

What is U shaped recovery ?

Answer 4

In this , the economy after falling, struggles around a low growth rate for some time, before rising gradually to usual levels (google image)

Question 5

What is W shaped recovery ?

Answer 5

This is a dangerous creature. In this, growth falls and rises but falls again before recovering , thus forming a W like chart. This double dip can be due to the Second wave of pandemic (google)

Question 6

What is L shaped recovery ?

Answer 6

In this, the economy fails to regain the level of GDP even after years go by. This shows that there is a permanent loss to economy’s ability (google)