ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A recession is the part of an economic cycle that involves an economic contraction. One popular definition of recession is two consecutive quarters of economic contraction.

Detailed explanation-2: -Economic contractions often become recessions. A recession is a significant decline in general economic activity extending over a period of time. A general rule of thumb is that two consecutive quarters of economic contraction constitute a recession.

Detailed explanation-3: -Synonyms: downturn, downswing, slump, crunch (informal), decline, hard times (informal), economic slowdown, economic crisis, financial crisis, depression. Sense: Noun: withdrawal. Synonyms: withdrawal, withdrawing, retreat, retirement, pullback, pullout, pulling out, receding.

Detailed explanation-4: -When the economy goes up, it’s called “economic growth”; but when it goes down, it’s called “economic contraction” (or “downturn”). If the economy shrinks for two consecutive quarters, it is said to have gone into recession. In general, this is determined by an indicator called the “gross domestic product” (or “GDP”).

Detailed explanation-5: -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.