A recession definition is a period of slowed economic activity. The term describes a contracting economy. It is typically defined as two consecutive quarters of declining gross domestic product. Characterize a recession by high unemployment, low productivity, and lower levels of investment. A recession is also a part of the business cycle. Furthermore, a typical recession lasts from six to eighteen months. In the U.S., a non-profit organization called the National Bureau for Economic Research (NBER) officially declares a recession.
Describe a recession as either short or long, and shallow or deep. Short or long refers to the duration of the recession. Whereas shallow or deep refers to the severity of the recession. But, refer to more severe recessions as deep.
If you want to learn more about the historic dates of expansions and contractions of the business cycle in the US, then go to: www.nber.org. Also, learn how you can be the best wingman with our free How to be a Wingman guide!
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