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It requires emergency aid to sustain confidence and prevent a collapse of demand.
Home builders like Toll Brothers have struggled to weather the biggest collapse of demand for new homes on record.
An external and extreme financial market shock resulting in a temporary collapse of demand (such as the 2008-09 global financial crisis) is another.
"It reflects the fact that we are still feeling the effects of the collapse of demand caused by the crisis," she said.
One respondent told us they faced "a collapse of demand from public sector clients", while another was struggling with "a lack of salesmanship experience".
When the banking crisis led to the collapse of demand in the economy in 2008-2009, the deficit was necessary to prevent the fall from becoming even steeper.
Similar(44)
Because of the collapse of private demand, especially housing.
But, this rise in long-term unemployment is readily explained by the prolonged collapse of aggregate demand.
But a collapse of consumer demand pushed Chrysler to close the factory roughly a year ahead of schedule.
Steinbrück acknowledged that dependence on exports, which accounted for 40percentt of its gross domestic product, made Germany more vulnerable to the collapse of global demand.
"Deflation is in almost all cases a side-effect of a collapse of aggregate demand – a drop in spending so severe that producers must cut prices on an ongoing basis in order to find buyers," explained Bernanke.
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