ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -In 1974, economist Julius Shiskin came up with a few rules of thumb to define a recession: The most popular was two consecutive quarters of declining GDP. A healthy economy expands over time, so two quarters in a row of contracting output suggests there are serious underlying problems, according to Shiskin.

Detailed explanation-2: -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-3: -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-4: -A recession is two or more consecutive quarters of a negative growth rate of gross domestic product (GDP). Recessions can be caused by high interest rates, a manufacturing slowdown, an asset bubble burst, a real estate slide, or credit crunches. The average recession since World War II has been about 11 months.

Detailed explanation-5: -The NBER defines a recession as a period between a peak and a trough in the business cycle where there is a significant decline in economic activity spread across the economy that can last from a few months to more than a year.