How Is Hysteresis Related to Recession? Explain

question 18

Essay

How is hysteresis related to recession? Explain.

---

Definitions:

Pareto Efficient

A condition in which no individual's situation can be improved without worsening the situation of another individual.

Public Good

A product or service that is provided without profit to all members of a society, either by the government or a private individual or organization.

Private Good

A product or service that is consumed by an individual and cannot be used or consumed by others once it is purchased.

Pareto Optimal

Pareto optimal describes a state in an economic system where it’s impossible to make any one individual better off without making at least one individual worse off, indicating an efficiency in resource allocation.