Economic stagnation refers to a prolonged period where an economy experiences little to no growth in real GDP (Gross Domestic Product), high unemployment rates, low business activity levels, and limited consumer spending power.
Related terms
Recession: This term refers to a significant decline in economic activity over two consecutive quarters (six months). It is characterized by reduced production levels, increased unemployment rates, and decreased consumer spending.
Depression: This term represents a severe and prolonged economic downturn characterized by high unemployment rates, significant declines in GDP, and widespread business failures.
Fiscal stimulus: This term refers to government policies aimed at boosting economic activity during times of recession or stagnation. It often involves increased government spending or tax cuts to stimulate demand.