Political Economy Economic Systems Questions
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 business profits, rising unemployment rates, and a general slowdown in economic growth. During a recession, consumer spending tends to decrease, businesses reduce production and investment, and financial markets experience volatility. The duration and severity of a recession can vary, but it is typically marked by a sustained period of economic decline lasting several months or even years. Governments and central banks often implement various measures, such as fiscal stimulus and monetary policy adjustments, to mitigate the negative effects of a recession and stimulate economic recovery.