ECONOMIC RECESSION Meaning and
Definition
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Economic recession is a term used to describe a significant decline in economic activity that persists over a prolonged period of time. It is characterized by a contraction in the GDP (Gross Domestic Product), increased unemployment rates, reduced industrial production, declining retail sales, and general economic hardship. A recession is typically marked by a significant fall in the overall level of economic output, resulting in decreased consumer spending and business investments.
During an economic recession, there is a decline in the overall demand for goods and services in the economy. This often leads to a decrease in production output, causing businesses to cut costs by reducing the workforce or employing other cost-cutting measures. As a result, unemployment rates tend to rise, leading to reduced consumer spending and a negative impact on businesses across various sectors.
Recessions are considered a normal part of the business cycle, which typically consists of alternating periods of economic expansion and contraction. They can occur due to various factors such as a decline in consumer confidence, increased interest rates, reduced investment spending, financial crises, or global economic downturns.
Governments and central banks often implement measures to combat recessions, such as fiscal stimulus packages, monetary policies, and regulatory interventions. These measures aim to stimulate economic growth, restore consumer confidence, and stabilize financial markets, ultimately helping to bring the economy out of recession.
Common Misspellings for ECONOMIC RECESSION
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Etymology of ECONOMIC RECESSION
The word "economic recession" has a clear etymology.
The term "economic" derives from the Greek word "oikonomia", meaning "household management" or "management of resources". It is composed of "oikos", meaning "house" or "home", and "nomos", meaning "law" or "rule". Over time, "oikonomia" evolved into "economie" in Old French and later into "economy" in English.
The word "recession" finds its roots in the Latin word "recessus", meaning "a withdrawal" or "retreat". In the context of the economy, "recession" refers to a significant decline or slowdown in economic activity, typically characterized by a contraction in gross domestic product (GDP), a rise in unemployment rates, and a decrease in industrial production.
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