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: -Recent Recessions The investment advisor argues that the economy met the technical definition of recession after two consecutive quarters of negative growth, but numerous other positive economic indicators show the economy is not in recession.

Detailed explanation-3: -The most common definition of recession used in the media is a ‘technical recession’ in which there have been two consecutive quarters of negative growth in real GDP. This definition often appears in textbooks and is widely used by journalists.

Detailed explanation-4: -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-5: -The NBER defines a recession as “a significant decline in economic activity spread across the economy, lasting more than two quarters which is 6 months, normally visible in real gross domestic product (GDP), real income, employment, industrial production, and wholesale-retail sales".