Explain the concept of economic recession.

Explain the concept of economic recession.

Economic recession refers to a significant decline in economic activity within a country or region. It is characterized by a contraction in gross domestic product (GDP), a decrease in employment rates, and a decline in consumer spending. During a recession, businesses may experience reduced profits, leading to layoffs and increased unemployment rates. Factors contributing to a recession can include a decrease in consumer confidence, a decline in investment, a decrease in government spending, or a financial crisis. Governments and central banks often implement measures such as fiscal stimulus or monetary policy to try to mitigate the negative effects of a recession and stimulate economic growth.