Recession

A recession is a period of economic decline, typically defined as two consecutive quarters of negative economic growth as measured by a country’s gross domestic product (GDP). During a recession, businesses and consumers alike experience a decrease in spending, which leads to a decrease in production, income, and employment. A recession is typically accompanied by a drop in the stock market, a decrease in consumer confidence, and an increase in unemployment.

History of Recession

The term “recession” was first used in the 17th century to describe a period of economic decline. The term was popularized in the 19th century by British economist John Stuart Mill, who used it to describe a period of economic contraction. Since then, the term has been used to describe periods of economic decline in many countries around the world.

Recessions are typically caused by a combination of factors, including a decrease in consumer spending, an increase in taxes, a decrease in government spending, or an increase in interest rates. In some cases, a recession can be caused by a single event, such as a natural disaster or a financial crisis. In other cases, a recession can be caused by a combination of factors.

Comparisons

Summary

A recession is a period of economic decline, typically defined as two consecutive quarters of negative economic growth as measured by a country’s gross domestic product (GDP). Recessions are typically caused by a combination of factors, including a decrease in consumer spending, an increase in taxes, a decrease in government spending, or an increase in interest rates. For more information on recessions, visit the websites of the International Monetary Fund, the World Bank, or the U.S. Bureau of Economic Analysis.

See Also

• Economic Growth
• Inflation
• Deflation
• Depression
• Business Cycle
• Gross Domestic Product
• Unemployment Rate
• Consumer Price Index
• Monetary Policy
• Fiscal Policy

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