What Is Recession? Meaning & Example
Definition
A recession is a significant, widespread decline in economic activity lasting more than a few months. It often brings rising unemployment and falling business profits.
Related terms
GDP is the total value of goods and services produced in an economy over a period. It is the broadest measure of economic size and growth.
Unemployment RateThe unemployment rate is the percentage of the labor force that is actively looking for work but has no job. It is a key gauge of economic health.
Business CycleThe business cycle is the recurring pattern of expansion, peak, contraction and recovery in an economy. Cycles vary greatly in length and intensity.
What is Recession?
A recession is a significant, widespread decline in economic activity lasting more than a few months. It often brings rising unemployment and falling business profits.
Can you give an example of Recession?
Two consecutive quarters of shrinking GDP are a common rule of thumb for a recession, though official definitions vary.