WORLD HISTORY

Detailed explanation-1: -Consider a recession, a period of low economic activity. With lower demand for goods and services, firms start laying off workers and at the same time refrain from raising prices. So unemployment rises and inflation falls during recessions.

Detailed explanation-2: -A recession is a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.

Detailed explanation-3: -An economic depression is a period of sharp and sustained decline in economic activity that typically includes negative gross domestic product growth and a substantial rise in unemployment, poverty and homelessness.

Detailed explanation-4: -Cyclical unemployment is the impact of economic recession or expansion on the total unemployment rate. Cyclical unemployment generally rises during recessions and falls during economic expansions and is a major focus of economic policy.

Detailed explanation-5: -Trough. In the depression stage, the economy’s growth rate becomes negative. There is further decline until the prices of factors, as well as the demand and supply of goods and services, contract to reach their lowest point. The economy eventually reaches the trough.