In economics a recession is a general slowdown in economic activity over a long period of time, or a business cycle contraction. During recession, many macroeconomic indicators vary in a similar way. Production as measured by Gross Domestic Product (GDP), employment, investment spending, capacity utilisation, household incomes, business profits and inflation all fall during recession; bankruptcies and the unemployment rate rises.
Government usually respond to recession by adopting expansionary macroeconomic politics such increasing money supply, increasing government spending and decreasing taxation. |