The Explanation of Recession

Recession. GDP. Contraction. Stagnation. What does it really mean? Here’s an explainer. Click here for the full story: [ »»» Subscribe to The National to watch more videos here: Voice Your Opinion & Connect With Us Online: The National Updates on Facebook: The National Updates on Twitter: The National Updates on Google+: »»» »»» »»» »»» »»» The National is CBC Television's flagship news program. Airing seven days a week, the show delivers news, feature documentaries and analysis from some of Canada's leading journalists....(read more)

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Recession - Explained Recession is a term that most of us have heard at some point in our lives, especially during times of economic instability or downturns. It refers to a period of economic decline that lasts for several months or even years. During a recession, businesses struggle to make a profit, unemployment rates rise, and consumer spending, as well as confidence, decreases. There are several causes of a recession. It could result from a reduction in consumer spending, which leads to a decrease in business revenue and, in turn, causes companies to cut back on their workforce, leading to unemployment. Another reason for a recession is an increase in the cost of goods and services, which leads to inflation and reduces purchasing power. A rise in interest rates set by central banks to control inflation in the economy can also spark a recession. Recessions can lead to several negative consequences, such as higher unemployment rates, increased poverty, and a decrease in economic growth. Governments try to prevent a recession by taking measures like lowering interest rates, increasing government spending, and creating favorable policies for businesses to encourage them to invest. To understand a recession, it is essential to know that there are four phases of the business cycle - expansion, peak, contraction, and trough. The expansion phase is marked by an increase in economic growth and high employment rates, while the peak phase is characterized by a slowdown in economic growth. Next comes the contraction phase, which is the onset of the recession, and is marked by a decline in economic activity that affects employment, spending, and investment. Finally, the trough phase is the low point in the economy, preceding the eventual recovery. In conclusion, a recession is a period of economic decline that negatively affects every aspect of the economy. It can be caused by various factors, including a drop in consumer spending, inflation, or changes in central bank policies. Understanding the phases of the business cycle can help in predicting an imminent recession and taking preventive measures. The governments of nations also play a significant role in preventing recessions by implementing policies that promote economic growth, creating employment opportunities, and increasing the purchasing power of citizens. https://inflationprotection.org/the-explanation-of-recession/?feed_id=89825&_unique_id=6441d58f69b80 #Inflation #Retirement #GoldIRA #Wealth #Investing #canada #CanadianBroadcastingCorporation #CBC #CBCTelevision #Contraction #economy #gdp #money #National #recession #Stagnation #the #TheNational #RecessionNews #canada #CanadianBroadcastingCorporation #CBC #CBCTelevision #Contraction #economy #gdp #money #National #recession #Stagnation #the #TheNational