Do you understand Recession ?

A Recession , is a prolonged period of time when a nation's economy is slowing down or contracting usualy for 2 quarters consecutively.

The following are some of the trends that you see of such a slow-down in economy
1.People buying less stuff
2.Decrease in factory production
3.Growing unemployment
4.Slump in personal income
5.An unhealth stock Market

One can define nations economy as "the production and cosumption of goods and services in that nation".

If there are signs of slowdown in production and consumption of goods and services , then one can say the nation is showing signs of recession. This is what we see nowday's in US.

Its normally measured by economists in terms of GDP (gross domestic product). The GDP is the value of all reported goods and services produced by people and institutions operating in a country.

An overall decrease in GDP indicates that there is a decresed demand and chances that companies producing these goods and services might have reduced their volume which further means, companies laid off people effecting increasing in unemployment.

Keep watching this space for a detailed write-up on recession and ways to control the recession and different controls that US government has.

Interesting ? subscribe to the feed so that you get notified when I update this article.

Also Leave your comments on this and topics that you want to see further in this series "360 basics"