V-Shaped Recovery

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DEFINITION of 'V-Shaped Recovery'

A type of economic recession and recovery that resembles a "V" shape in charting. Specifically, a V-shaped recovery represents the shape of the chart of certain economic measures, such as employment, GDP and industrial output. A V-shaped recovery involves a sharp decline in these metrics followed by a sharp rise back to its previous peak.

INVESTOPEDIA EXPLAINS 'V-Shaped Recovery'

There are countless other shapes a recession and recovery chart could take, including L-shaped, W-shaped, U-shaped and J-shaped. Each shape represents the general shape of the chart of economic metrics that gauge the health of the economy.

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