Wednesday, October 22, 2008

 

Dictionary Corner #34

Recession – noun

A temporary economic decline during which trade and industrial activity are reduced.

DERIVATIVES – recessionary adjective.



Another definition and explanation of recession from investopedia:

A significant decline in activity across the economy, lasting longer than a few months. It is visible in industrial production, employment, real income and wholesale-retail trade. The technical indicator of a recession is two consecutive quarters of negative economic growth as measured by a country's gross domestic product (GDP).

Recession is a normal (albeit unpleasant) part of the business cycle; however, one-time crisis events can often trigger the onset of a recession. A recession generally lasts from six to 18 months. Interest rates usually fall in recessionary times to stimulate the economy by offering cheap rates at which to borrow money.

Comments:
Have we not heard enough of recessions on the news! Between this and the economist posts...things aren't that bad! Seriously, unless I lost my job in the morning, I don't feel any worse off than this time last year.
 
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