recession
Sign in to saveIn economics, a recession is a business cycle contraction that occurs when there is a period of broad decline in economic activity. Recessions generally occur when there is a widespread drop in spending (an adverse demand shock). This may be triggered by various events, such as a financial crisis, an external trade shock, an adverse supply shock, the bursting of an economic bubble, or a large-scale anthropogenic or natural disaster (e.g. a pandemic). There is no official definition of a recession, according to the International Monetary Fund.
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A recession is a period when economic activity broadly declines, usually triggered by a significant drop in spending caused by events like financial crises, disasters, or the collapse of economic bubbles. It matters because widespread economic contraction affects jobs, income, and people's ability to spend and invest.
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Article
28 sectionsContents
- Definitions
- Attributes
- Type of recession or shape
- Front end of a recession
- Back end of a recession
- Psychological aspects
- Balance sheet recession
- Liquidity trap
- Paradoxes of thrift and deleveraging
- Causes of recessions
- Predictors
- Government responses
- Stock market
- Consequences
- Unemployment
- Business
- Social effects
- History
- Global
- Australia
- European Union
- United Kingdom
- United States
- Late 2000s
- United States
- See also
- References
- External links
In economics, a recession is a business cycle contraction that occurs when there is a period of broad decline in economic activity. Recessions generally occur when there is a widespread drop in spending (an adverse demand shock). This may be triggered by various events, such as a financial crisis, an external trade shock, an adverse supply shock, the bursting of an economic bubble, or a large-scale anthropogenic or natural disaster (e.g. a pandemic). There is no official definition of a recession, according to the International Monetary Fund.
In the United States, a recession is defined as "a significant decline in economic activity spread across the market, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales." The European Union has adopted a similar definition. In the United Kingdom and Canada, a recession is defined as negative economic growth for two consecutive quarters.