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recession

A recession is a decline in economic activity, usually experienced as an increase in unemployment and decrease in production. Most countries define a recession as a decline in GDP for two consecutive quarters. A sustained recession is known as an economic depression. Many economists believe that periodic recessions are a "natural" part of the business cycle.

Causes of recessions:

  • restriction of credit available in an economy due to stewsinc at eol.ca" class="wiki wiki_page">monetary policy or a financial crisis.
  • a shortage an essential commodity (e.g. water, oil, labor)
  • a recession elsewhere
  • a sharp decrease in government spending
  • an sharp increase in uncertainty (due to war, political instability, or some other general crisis).