5 years have passed now, but the world economy is still burdened by the negative effects of the global economic recession. Different economists define recession differently, but a common definition that can be derived is that recession is long-lasting and is the main reason for the slowdown in economic activity (GDP). In terms of measuring the effects of the recession, the broadest indicator of economic activity is real gross domestic product (GDP). Our next section will discuss how economic activities in the United States have actually declined since the market turmoil began. Decline in consumer spending: Consumer spending is the most integral component of the GDP calculation, and consumer spending accounts for 70% of total consumer spending. Since the onset of the recession, the US economy has seen a decline in consumer spending which changed by -3.8% during the third quarter of 2008 and -4.3% in the last quarter of 2008. Consumer spending consumption was not only felt in consumer consumption but also in durable goods, non-durable goods and services sector. Fall of private investments: Priva...