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Consumer Behavior and Recession in the last Decade

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The discussion centers on how people or consumers would react during a period when a country's GDP growth rates are negative for two consecutive quarters. It specifically argues how the consumers would react during and after every recession.

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Solution Summary

Consumers are vital partners in consummating business transactions. Without them, businesses will be non-existent and irrelevant. Predicting how consumers will react given an altered parameters in the economy is vital to the survival of the capitalists. We discuss here the behavior of consumers during and after recession.

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Consumption behavior is altered whenever recessions occur.

During a recession (a negative growth rate in the gross national product for two consecutive quarters) people tend to limit their purchasing habits, focusing instead on the basic necessities of life, primarily food. People (including me) disdains imports during recession. This behavior is not uncommon among ...

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