Recession
A recession is a period in the business cycle where economic activity slows down significantly. This is characterized by declining consumer spending, lower business investment, rising unemployment, and reduced production. During a recession, the overall economy shrinks, leading to less income and fewer jobs. It often lasts for several months and can be triggered by various factors, such as financial crises, high inflation, or external shocks. Recessions are a normal part of the economic cycle, usually followed by recovery as businesses and consumers regain confidence and activity picks up.
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A recession is a significant decline in economic activity across the economy that lasts for months or longer. It is typically identified by a drop in GDP, income, employment, and consumer spending. During a recession, businesses may see reduced sales, leading to layoffs and less investment. As people lose jobs or earn less, they often spend less money, which can further slow down the economy. Recessions can be caused by various factors, including financial crises, decreased consumer confidence, or external shocks like pandemics or wars. Governments often respond with measures to stimulate economic growth.