Recession
A recession is a significant, widespread fall in economic activity that lasts more than a few months. A common rule of thumb is two quarters in a row of falling real GDP.
In the US, recessions are officially dated by the National Bureau of Economic Research, which looks at jobs, income and spending as well as GDP. Stock markets often fall before a recession begins.
Related terms
- GDP (gross domestic product): GDP is the total market value of all final goods and services produced in a country in a period.
- Bear market: A bear market is a long period of falling prices, usually a drop of 20% or more from a recent high.
- Unemployment rate: The unemployment rate is the share of people in the labour force who don't have a job but are looking for one.
- Fiscal policy: Fiscal policy is the government's use of spending and taxes to influence the economy.
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