Recession
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Beginner Level
Global
Macroeconomics
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Definition
A significant decline in economic activity spread across the economy, lasting more than a few months, typically visible in GDP, income, employment, and production.
Detailed Explanation
Technically defined as two consecutive quarters of negative GDP growth. Recessions are characterized by falling output, rising unemployment, and decreased consumer spending. Governments use fiscal and monetary policies to combat recessions.
Example
The 2008 Global Financial Crisis led to a severe recession in many countries, with falling stock markets and rising unemployment.