During a typical recession, consumer demand drops, meaning that companies selling products and services lower their prices (or at least not raise them) in order to entice reluctant customers to spend.

The National Bureau of Economic Research (NBER) defines a recession as a “significant decline in economic activity that is ...

This paper develops a complete-market production economy with heterogeneous beliefs about TFP growth. Hiring occurs before TFP is known and is, therefore, risky (operational leverage). The firm's ...