recession

A downturn in overall economic activity is referred to as a recession. When the GDP growth rate is negative for two consecutive quarters, a recession is considered to have occurred. Recessions are regarded as a normal aspect of the expansion and contraction of the business and economic cycles. Unemployment rates rise as businesses try to decrease costs. In turn, this lowers consumption rates, which lowers inflation rates. Lower prices result in lower business profits, which leads to additional job losses and a downward spiral of the economy, thereby ushering in a recession.