Definition
The
NBER’s Business Cycle Dating Committee defines a recession as “a significant
decline in economic activity spread across the economy, lasting more than a few
months, normally visible in production, employment, real income, and other
indicators. A recession begins when the economy reaches a peak of activity and
ends when the economy reaches its trough.”
Economic
recession is a period of general economic decline and is
typically accompanied by a drop in the stock market, an increase in
unemployment, and a decline in the housing market. Generally, a recession is
less severe than a depression. The blame for a recession generally falls on the
federal leadership, often either the president himself, the head of the Federal
Reserve, or the entire administration.
A recession is
when the economy declines significantly for at least six months. That means
there's a drop in the following five economic indicators: real
GDP, income, employment, manufacturing and retail sales.