ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Recession is an economic term that describes a period of economic decline in a country. It is a temporary phase where we will see a decline in trade, industrial activity, employment, etc.

Detailed explanation-2: -re·ces·sion. A period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters. From Oxford Dictionaries. Recessions can be daunting, particularly when the economic downturn catches you and your business unawares.

Detailed explanation-3: -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.

Detailed explanation-4: -It is seen as an intrinsic stage of the economic cycle. These are the generally accepted definitions of the two: A recession is a decrease in gross domestic product (GDP) that lasts for at least two quarters. It is a slowdown in economic activity. A depression is a severe drop in GDP that lasts for a year or more.

Detailed explanation-5: -A recession is a significant, pervasive, and persistent decline in economic activity. Economists measure a recession’s length from the prior expansion’s peak to the downturn’s trough. Recessions may last as little as a few months, but the economy may not recover to its former peak for years.