Grade Booster exam workshops for 2024. Join us in to Birmingham, Bristol, Leeds, London, Manchester and Newcastle Book now


Economic Scarring

Economic scarring, also known as hysteresis, refers to the long-lasting negative economic effects of a recession or other economic downturn. Economic scarring can occur when workers who lose their jobs during a recession have difficulty finding new employment, leading to a permanent loss of skills and earning potential. Economic scarring can also occur when businesses that fail during a recession are not replaced, leading to a permanent loss of economic activity.

Economic scarring can have negative impacts on a country's long-term economic growth (long run aggregate supply) and can lead to increased income inequality and social and political instability.

© 2002-2024 Tutor2u Limited. Company Reg no: 04489574. VAT reg no 816865400.