What is the standard definition of recession?
the "standard" definition of recession is two consecutive quarter declines in real GDP -according to NBER "a recession is a significant decline in activity spread across the economy lasting more than a few month, visible in industrial production, employment, real income and wholesale retail trade
What is the economic meaning of a recession?
A recession is a significant decline in economic activity that lasts for months or even years. Experts declare a recession when a nation’s economy experiences negative gross domestic product (GDP), rising levels of unemployment, falling retail sales, and contracting measures of income and manufacturing for an extended period of time.
What is the difference between a recession and a depression?
What Is the Difference Between a Recession and a Depression? The difference between a recession and a depression is that while a recession is considered a normal part of the business cycle and can last up to four quarters (one year), a depression can last for longer than one year and has a greater long-term impact on the welfare of citizens.
How is a recession defined?
Usually, when a country’s output is growing, the value of the goods and services it produces, known as its gross domestic product (GDP), goes up. But during an economic downturn this value falls. A recession is a period of negative economic growth for two consecutive quarters.