Definition:

A recession is a downturn in economic activity that leads to widespread unemployment, and a drop in economic output and demand.

recession

Example:

  • The COVID-19 pandemic caused businesses to have to close shop, resulting in huge losses to businesses around the world. 
  • These businesses had to lay off hundreds of thousands of employees, resulting in mass unemployment.
  • People no longer had a steady source of income, meaning they were unable to spend money on goods and services.
  • This reduced demand hit businesses’ revenues, further contributing to their losses. 

How Does a Recession End?

  • Government aid is crucial in ending a recession. 
  • Central banks can help by changing monetary policy

Memes make even recessions better!

recession meme

 

 

 

 

 

 

FAQs

What does recession mean?

Recession is a downturn in economic activity that leads to widespread unemployment and a rise in prices.

What happens in a recession?

Recession causes unemployment, drop in demand and a drop in economic output.

How do we know if we are in a recession?

A recession can be measured by drop in GDP, economic output and a rise in rates of unemployment.

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    Raghavi Kasa
    Author Raghavi Kasa

    Raghavi likes to think that because she writes for a living, she'd be good at writing a short bio for herself. But she isn't. She is good at binging K-drama, though.

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