Difference between revisions of "Recession"
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[[File:lighterstill.jpg]][[File:Recession.jpg|right|frame]] | [[File:lighterstill.jpg]][[File:Recession.jpg|right|frame]] | ||
| − | *Date: circa [ | + | *Date: circa [https://www.wikipedia.org/wiki/17th_Century 1652] |
==Definitions== | ==Definitions== | ||
*1 : the act or [[action]] of receding : withdrawal | *1 : the act or [[action]] of receding : withdrawal | ||
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*3 : a period of reduced [[economic]] activity | *3 : a period of reduced [[economic]] activity | ||
==Description== | ==Description== | ||
| − | In [[economics]], a '''recession''' is a [[business]] [[cycle]] contraction, a general slowdown in economic activity over a period of time. During recessions, many [ | + | 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[ | + | 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] |
[[Category: Economics]] | [[Category: Economics]] | ||
Latest revision as of 02:37, 13 December 2020
- Date: circa 1652
Definitions
- 1 : the act or action of receding : withdrawal
- 2 : a departing procession (as of clergy and choir at the end of a church service)
- 3 : a period of reduced economic activity
Description
In economics, a recession is a business cycle contraction, a general slowdown in economic activity over a period of time. During recessions, many macroeconomic indicators vary in a similar way. Production as measured by Gross Domestic Product (GDP), employment, investment spending, capacity utilization, household incomes, business profits and inflation all fall during recessions; while bankruptcies and the 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 supply, increasing government spending and decreasing taxation.[1]
