2007-12-13 16:12:27 · 4 answers · asked by Twinkel 1 in Business & Finance ➔ Investing
In the U.S., a recession is defined as two or more consecutive economic quarters (6 months in a row) in which the GDP (Gross Domestic Product - the total production of the economy) declines.
2007-12-13 16:24:32 · answer #1 · answered by Doctor J 7 · 1⤊ 0⤋
A recession is what the NBER says it is -- it's a common myth that a recession is two consecutive quarters of down economic activity.
Per the NBER: "A recession is a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales. A recession begins just after the economy reaches a peak of activity and ends as the economy reaches its trough."
2007-12-13 23:47:11 · answer #2 · answered by chungsterama 3 · 1⤊ 0⤋
When a countries GDP (gross domestic product) shrink for 2 quarters in a row (a quarter is 3 months)
So a half a year where a country is making less money in all goods, manufacturing and services is defined as a recession.
2007-12-13 16:26:10 · answer #3 · answered by hogie0101 4 · 1⤊ 0⤋
A time period in which the economy shrinks loss of jobs, less spending, lower investment rates. The trend has to be prolonged to qualify.
2007-12-13 16:21:20 · answer #4 · answered by Anonymous · 0⤊ 1⤋