BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -A recession can be defined as a sustained period of weak or negative growth in real GDP (output) that is accompanied by a significant rise in the unemployment rate. Many other indicators of economic activity are also weak during a recession.

Detailed explanation-2: -Cyclical unemployment occurs with changes in economic activity over the business cycle. During an economic downturn, a shortfall of demand for goods and services results in a lack of jobs being available for those who want to work.

Detailed explanation-3: -Consider a recession, a period of low economic activity. 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: -Why Unemployment Rises During a Recession. Because a recession is a slowdown in economic activity and labor is a key economic input, along with capital, it is logical that unemployment would rise as output (what companies make and sell) declines as companies making less and selling less need fewer employees.

Detailed explanation-5: -A recession is a significant decline in economic activity, lasting more than a few months. There’s a drop in the following five economic indicators: real gross domestic product, income, employment, manufacturing, and retail sales.