Definition: Recession is a stage in which buying, selling, production, and employment diminish, and overall economic activity declines. Macroeconomics generally considers a decline in the gross domestic product (GDP) coupled with negative economic growth to be a recession. When key economic activity declines for two consecutive quarters, economists will label the period a recession. A period of recession generally follows a period of rapid and widespread growth in the economy. Recessions are sometimes followed by a period of depression. Recessions trigger and are triggered by rising unemployment, falling output levels, a decline in the gross national product, and a retreat in investments.
Also Known As: GDP decline, negative growth, economic contraction, fall in GNP, trough, business cycle downturn
Common Misspellings: recesion, resession, resesion, receshion, reseshion, ressession
Examples:The length of time a recession lasts often depends on the recessionary state of mind of the consumers in it.