BANKING AFFAIRS

Detailed explanation-1: -A recession is a significant, widespread, and prolonged downturn in economic activity. A common rule of thumb is that two consecutive quarters of negative gross domestic product (GDP) growth mean recession, but many use more complex measures to decide if the economy is in recession.

Detailed explanation-2: -An economic cycle is the overall state of the economy as it goes through four stages in a cyclical pattern: expansion, peak, contraction, and trough. Factors such as GDP, interest rates, total employment, and consumer spending can help determine the current stage of the economic cycle.

Detailed explanation-3: -A recession refers to a meaningful and extensive downturn in economic activity. A common definition holds that two consecutive quarters of decline in gross domestic product (GDP) constitute a recession. In general, recessions bring decreased economic output, lower consumer demand, and high unemployment.

Detailed explanation-4: -What Is Negative Growth? Negative growth is a contraction in business sales or earnings. It is also used to refer to a contraction in a country’s economy, which is reflected in a decrease in its gross domestic product (GDP) during any quarter of a given year.