What is a recession?

[Grayson]

I often hear the term recession used when discussing the economy, but I’d like a simple explanation. What exactly is a recession, what causes it, and how does it typically affect businesses, jobs, and everyday people? Any easy-to-understand examples would be helpful.

 

[isabel]

Recession is a slowdown in the economy over a period resulting in reduced expenditure, reduced employment, and failed companies. It is as though the money ceases circulating in such a high rate, hence the businesses make less and the individuals experience the repercussions in their day-to-day lives.

 

[robertwilliam]

A recession is usually characterized by an increase in unemployment, a reduction in company profits, and a fall in consumer expenditure, which are all signs of a large-scale, long-lasting, and extensive decline in economic activity.

 

[Gsusangrey]

A recession is defined as a substantial drop in economic activity that extends beyond a few months and affects the entire economy.

It is frequently distinguished by:

• A decline in GDP (gross domestic product).
• increasing rates of unemployment.
• A drop in consumer expenditure.

 

[nikhilrajoria]

Recession refers to a major decrease in the economic activity in the entire economy, whose duration extends beyond a couple of months. The main characteristics include a declining GDP, the increasing unemployment rate, and a decreased consumer expenditure.

 

[peterkavinsky]

A recession is a period of significant economic decline where spending, jobs, and business activity slow down across the country. It’s typically identified when a nation’s GDP falls for two consecutive quarters.