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Recession

Recession

A recession is a sustained period of lowered economic activity. Recessions usually include lower unemployment, a slowed housing market, and lower economic output in general.

Top Questions Asked on ChaCha.com for Recession

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  1. How is the recession related to the depression?

    The recession and the depression were both times where people...

  2. How did Keynesian economics explain this recession?

    Budget cuts knocked the economy into a tailspin. Roosevelt's ...

  3. How close are we to the end of the recession?

    CBO anticipates that the current recession, which started in ...

  4. How did Consumers contribute to the Recession?

    The consumers bought up everything including stock. When the ...

  5. Which phase of a business cycle can lead an economy into recession?

    During the contraction phase of the business cycle, productio...

  1. How is the recession related to the depression?

    The recession and the depression were both times where people...

  2. How did Keynesian economics explain this recession?

    Budget cuts knocked the economy into a tailspin. Roosevelt's ...

  3. How did the kennedy administration battle the recession?

    One major economic policy of the JFK administration was the 1...

  4. What occurs when a producer does not bear the complete cost of productionA)contraction B) externality C) expansion D) recession?

    The answer is A) Contraction, this is because of the agreemen...

  5. How close are we to the end of the recession?

    CBO anticipates that the current recession, which started in ...

  1. When will this economic recession end?

    Within 2 years we will know either way if we are going to esc...

  2. Do you think we will get out of this recession?

    Yes, I think we will get out of the recession, but many econo...

  3. When does a recession become a depression?

    The simple definition of a depression is that it is a a reces...

  4. How long will this recession last?

    The prevailing view is that the recession will last at least ...

  5. What is the meaning of recession?

    A recession is defined to be a period of two quarters of nega...

Top Questions Asked on ChaCha Mobile for Recession

In the Last:
Week | Month

  1. What is the difference in recession and depression?

    A depression is any economic downturn where real GDP declines...

  2. What is the recession?

    A recession is a period of general and sustained economic dec...

  3. Is canada in a recession?

    Canada is in a recession in concurrence with the American rec...

  4. Do you think we will get out of this recession?

    Yes, I think we will get out of the recession, but many econo...

  5. Which phase of a business cycle can lead an economy into recession?

    During the contraction phase of the business cycle, productio...

  1. Why are we in a recession?

    I think things have'nt been going right. It was a matter of t...

  2. Is America in a recession?

    America is not in a recession but it could occur at any point...

  3. Did Bill gates invent Microsoft in a recession?

    Microsoft Company was begun September 15, 1975. Policy makers...

  4. Is the US still in a recession?

    Yes, even though experts say otherwise nearly 9 in 10 America...

  5. What is an example of a recession?

    Examples of recession actions are output declines, employment...

About Recession

In economic terms, a recession is defined as a decline in Gross Domestic Product (GDP) for over two consecutive quarters. Recessions usually include:

*stock market drop
*higher rates of unemployment
*decline in the housing market

In terms of severity, a recession is less serious than a depression.

The Great Recession
The recession of 2007 became known as 'The Great Recession'. It started in December 2007, during the administration of George W. Bush, and lasted for one year and 6 months, until June 2009. It was declared officially over in July 2010, nearly a year after its end.

Causes of the Great Recession of 2007
Unregulated financial instruments, specifically 'credit default swaps', caused a bubble in the housing market. Many major banks and financial institutions found that they held toxic assets that the crash in the housing market made worthless. Economic activity nearly came to a halt in August 2008, when banks stopped lending to each other.

The Federal Government, under President George W. Bush, responded to the crisis by bailing out the biggest banks by passing, with the support of Congress, the Troubled Asset Relief Program (TARP).

This program used government money to buy assets and equity from several major financial institutions to keep them from failing entirely, in an effort to stop a complete collapse of the U.S. economy, and forestall another Great Depression. TARP was signed into law on October 3, 2008.

Related Images

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Office workers walk in front of a garments store offering discounted items at Raffles Place in Singapore on January 12, 2012. Singapore's trade-driven economy shrank in the last quarter of 2011, government figures showed January 3, raising the prospect of a technical recession as Europe grapples with its debt crisis.

A view of the newly built Marina Bay business district in Singapore on January 12, 2012. Singapore's trade-driven economy shrank in the last quarter of 2011, government figures showed January 3, raising the prospect of a technical recession as Europe grapples with its debt crisis.

Italian Industry Minister Corrado Passera (C) reacts in front of Welfare Minister Elsa Fornero (R) and Defense Minister Gianpaolo Di Paola at the Senate on December 22, 2011. Italian senators prepared to give final approval on December 22 to austerity tax increases and pension reforms in a bid to avoid bankruptcy for the eurozone's third largest economy as a recession looms.

Italian Welfare Minister Elsa Fornero (R) congratulates Italian Prime Minister Mario Monti (L) on his speech at the Senate in Rome on December 22, 2011. Italian senators headed to give final approval to austerity tax increases and pension reforms in a bid to avoid bankruptcy for the eurozone's third-biggest economy as recession looms. Monti's government was holding a confidence vote on the package in the Senate to ensure that the unpopular measures go through before Christmas to shore up sagging confidence in Italy on the financial markets.

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Recession