− | In [[economics]], a '''recession''' is a [[business]] [[cycle]] contraction, a general slowdown in economic activity over a period of time. During recessions, many [http://en.wikipedia.org/wiki/Macroeconomics macroeconomic] indicators vary in a similar way. Production as measured by [http://en.wikipedia.org/wiki/Gross_Domestic_Product Gross Domestic Product] (GDP), employment, investment spending, [http://en.wikipedia.org/wiki/Capacity_utilization capacity utilization], household incomes, business profits and inflation all fall during recessions; while [http://en.wikipedia.org/wiki/Bankruptcy bankruptcies] and the [http://en.wikipedia.org/wiki/Unemployment_rate unemployment rate] rise. | + | In [[economics]], a '''recession''' is a [[business]] [[cycle]] contraction, a general slowdown in economic activity over a period of time. During recessions, many [https://en.wikipedia.org/wiki/Macroeconomics macroeconomic] indicators vary in a similar way. Production as measured by [https://en.wikipedia.org/wiki/Gross_Domestic_Product Gross Domestic Product] (GDP), employment, investment spending, [https://en.wikipedia.org/wiki/Capacity_utilization capacity utilization], household incomes, business profits and inflation all fall during recessions; while [https://en.wikipedia.org/wiki/Bankruptcy bankruptcies] and the [https://en.wikipedia.org/wiki/Unemployment_rate unemployment rate] rise. |
− | Recessions are generally believed to be caused by a widespread drop in spending. Governments usually respond to recessions by adopting expansionary macroeconomic policies, such as increasing [[money]] s[http://en.wikipedia.org/wiki/Monetary_policy upply], increasing [http://en.wikipedia.org/wiki/Fiscal_policy government spending and decreasing taxation.][http://en.wikipedia.org/wiki/Recession] | + | Recessions are generally believed to be caused by a widespread drop in spending. Governments usually respond to recessions by adopting expansionary macroeconomic policies, such as increasing [[money]] s[https://en.wikipedia.org/wiki/Monetary_policy upply], increasing [https://en.wikipedia.org/wiki/Fiscal_policy government spending and decreasing taxation.][https://en.wikipedia.org/wiki/Recession] |