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MENTAL MODEL · M2058

K-shaped Recovery

K-shaped Recovery
BusinessHigh supportMacroeconomics
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Version 1.0.0 · Updated 2026-07-30

CORE DEFINITION

Refers to the divergence in recovery after an economic recession, where some sectors or classes (e.g., technology, the wealthy) grow strongly like the upper arm of the letter K, while others (e.g., tourism, the poor) continue to decline like the lower arm.

SCAFFOLDING EFFECT

psychology

Reduce cognitive load

To see through the lie of averages. When hearing 'economic recovery', don't just look at the average; ask 'whose recovery is it?'. It reveals that crises often exacerbate wealth gaps and structural inequality.

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Refers to the divergence in recovery after a recession: some sectors/classes (technology, the wealthy) grow strongly like the upper arm of K, while others (tourism, the poor) continue to decline like the lower arm. The mechanism is that **averages mask structure**—aggregate 'recovery' may be driven by a few sectors, and crises exacerbate inequality.

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Source support: Explicit

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    en.wikipedia.orghttps://en.wikipedia.org/wiki/Recession_shapesZH · Explicit
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