USA HISTORY

Detailed explanation-1: -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-2: -Most commentators and analysts use, as a practical definition of recession, two consecutive quarters of decline in a country’s real (inflation adjusted) gross domestic product (GDP)-the value of all goods and services a coun-try produces (see “Back to Basics, ” F&D, December 2008).

Detailed explanation-3: -Most commentators and analysts use, as a practical definition of recession, two consecutive quarters of decline in a country’s real (inflation-adjusted) gross domestic product (GDP)-the value of all goods and services a country produces. Although this definition is a useful rule of thumb, it has drawbacks.

Detailed explanation-4: -The Great Recession was the sharp decline in economic activity that started in 2007 and lasted several years, spilling into global economies. It is considered the most significant downturn since the Great Depression in the 1930s.