BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -While there is no single definition of recession, it is generally agreed that a recession occurs when there is a period of reduced output and a significant increase in the unemployment rate.

Detailed explanation-2: -Decreased production and increased unemployment occur during recessions. Inflation increases the purchasing power of money. This phase of the business cycle is characterized by low inflation, with a modest rise in the GDP, profits, and employment.

Detailed explanation-3: -With lower demand for goods and services, firms start laying off workers and at the same time refrain from raising prices. So unemployment rises and inflation falls during recessions.

Detailed explanation-4: -In particular, a recession is usually associated with a decline of 2 percent in GDP. In the case of severe recessions, the typical output cost is close to 5 percent. The fall in consumption is often small, but both industrial production and investment register much larger declines than that in GDP.

Detailed explanation-5: -Cyclical unemployment is the unemployment associated with the ups and downs of the business cycle. During recessions, cyclical unemployment increases and drives up the unemployment rate. During expansions, cyclical unemployment decreases and drives down the unemployment rate.