{"id":11060,"date":"2023-01-24T14:01:41","date_gmt":"2023-01-24T08:31:41","guid":{"rendered":"https:\/\/razorpay.com\/blog\/?p=11060"},"modified":"2023-03-07T11:26:42","modified_gmt":"2023-03-07T05:56:42","slug":"recession","status":"publish","type":"post","link":"https:\/\/razorpay.com\/blog\/business-banking\/recession\/","title":{"rendered":"Word of the Week &#8211; Recession"},"content":{"rendered":"<h2><b>Definition: <\/b><\/h2>\n<p>A recession is a downturn in economic activity that leads to widespread unemployment, and a drop in economic output and demand.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-11064 aligncenter\" src=\"https:\/\/d6xcmfyh68wv8.cloudfront.net\/blog-content\/uploads\/2023\/01\/recession-illustration.png\" alt=\"recession\" width=\"1148\" height=\"970\" srcset=\"https:\/\/blog.razorpay.in\/wp-content\/uploads\/2023\/01\/recession-illustration.png 1148w, https:\/\/blog.razorpay.in\/wp-content\/uploads\/2023\/01\/recession-illustration-300x253.png 300w, https:\/\/blog.razorpay.in\/wp-content\/uploads\/2023\/01\/recession-illustration-1024x865.png 1024w, https:\/\/blog.razorpay.in\/wp-content\/uploads\/2023\/01\/recession-illustration-768x649.png 768w\" sizes=\"auto, (max-width: 1148px) 100vw, 1148px\" \/><\/p>\n<h2><b>Example<\/b><span style=\"font-weight: 400;\">:<\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The COVID-19 pandemic caused businesses to have to close shop, resulting in huge losses to businesses around the world.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">These businesses had to lay off hundreds of thousands of employees, resulting in mass unemployment.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">People no longer had a steady source of income, meaning they were unable to spend money on goods and services.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">This reduced demand hit businesses\u2019 revenues, further contributing to their losses.\u00a0<\/span><\/li>\n<\/ul>\n<h2><b>How Does a Recession End?<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Government aid is crucial in ending a recession.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Central banks can help by changing <\/span><a href=\"https:\/\/razorpay.com\/blog\/business-banking\/word-of-the-week-monetary-policy\/\"><span style=\"font-weight: 400;\">monetary policy<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/li>\n<\/ul>\n<h2>FAQs<\/h2>\n<div id=\"rank-math-rich-snippet-wrapper\"><div id=\"rank-math-faq\" class=\"rank-math-block\">\n<div class=\"rank-math-list \">\n<div id=\"faq-1\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \">What does recession mean?<\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Recession is a downturn in economic activity that leads to widespread unemployment and a rise in prices. <\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-2\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \">What happens in a recession?<\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Recession causes unemployment, drop in demand and a drop in economic output. <\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-3\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \">How do we know if we are in a recession?<\/h3>\n<div class=\"rank-math-answer \">\n\n<p>A recession can be measured by drop in GDP, economic output and a rise in rates of unemployment. <\/p>\n\n<\/div>\n<\/div>\n<\/div>\n<\/div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Definition: A recession is a downturn in economic activity that leads to widespread unemployment, and a drop in economic output and demand. Example: The COVID-19 pandemic caused businesses to have to close shop, resulting in huge losses to businesses around the world.\u00a0 These businesses had to lay off hundreds of thousands of employees, resulting in<\/p>\n","protected":false},"author":106,"featured_media":11666,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[27],"tags":[402],"class_list":{"0":"post-11060","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business-banking","8":"tag-word-of-the-week"},"_links":{"self":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts\/11060","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/users\/106"}],"replies":[{"embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/comments?post=11060"}],"version-history":[{"count":0,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts\/11060\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/media\/11666"}],"wp:attachment":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/media?parent=11060"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/categories?post=11060"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/tags?post=11060"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}