ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -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.

Detailed explanation-2: -In basic terms, a recession is when the economy’s performance decreases for an extended period of several months, marked by GDP contraction, higher unemployment rates and lower consumer spending. During a recession, people may experience significant impacts on their daily lives.

Detailed explanation-3: -This usually results in job losses and an increase in the unemployment rate. 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-4: -Slowing down the economy is the main connection between inflation and a recession. To curb inflation, governments try to reduce economic activity until it meets the economy’s productive capacity. If they’re successful, they can slow down the cycle of spending and price increases without causing serious harm.