What is Recession !!!
A recession is a decrease of less than 10% in a country’s Gross Domestic Product ( GDP ). The decrease must last for more than one consecutive quarter of a year. The GDP is defined as the sum of private spending and government spending on goods, services, labor and investment. The terms recession and depression are often confused. It can be said that a recession is in general not as severe as a depression. A recession tends to resolve more quickly. Not everyone agrees on a specific definition for determining an economic recession , but most can point to several factors, which can cause a recession . Either significant drop in prices, or significant increases in prices can occur. A drop indicates that people may spend less money, thus the GDP is decreased. An increase in price may also reduce both private and public spending and thus decrease the GDP. In some ways, it is quite natural for countries to experience mild recessions. This is a built-in or endogenous factor of a s