recovery

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Recovery

The use of depreciation of assets to offset costs; or a new period of rising securities prices after a period of declining security values.

Recovery

1. Rising stock prices or GDP growth following a recession or period of declining growth. See also: Business cycle.

2. The use of depreciation or other deductions or tax credits to receive a refund for what one pays in taxes in a given year. Recovery must sometimes (though not always) be reported as taxable income for the next year.

recovery

1. The rising price of an asset. For example, following an extended decline in the price of precious metals, investor expectations of future inflation may generate recoveries in gold and silver prices.
2. Increased economic activity during a business cycle, resulting in growth in the gross domestic product.

recovery

see BUSINESS CYCLE.

recovery

a phase of the BUSINESS CYCLE characterized by an upturn in the level of economic activity (ACTUAL GROSS NATIONAL PRODUCT). Real output and investment increase and UNEMPLOYMENT falls. A recovery in economic activity is usually dependent on there being an increase in AGGREGATE DEMAND, which may come about autonomously or be induced by expansionary FISCAL POLICY and MONETARY POLICY. See also DEMAND MANAGEMENT.

Recovery

The amount of a deduction or creditable expense paid in a previous year that is later refunded to the taxpayer. The recovered amount must usually be included in income in the year it is received, to the extent of the previous tax benefit.
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