An economic recession refers to a significant decline in economic activity, characterized by a decrease in GDP, increased unemployment rates, and decreased consumer spending. It is usually marked by a contraction phase of the business cycle.
Related terms
Unemployment Rate: The percentage of individuals who are actively seeking employment but are unable to find jobs.
GDP (Gross Domestic Product): A measure of the total value of all goods and services produced within a country's borders during a specific period.
Consumer Spending: The amount of money spent by individuals or households on goods and services.