Introduction
A recession is a significant decline in economic activity that lasts for an extended period. It is often characterized by a decrease in GDP, widespread unemployment, and a lack of consumer confidence.
Causes of a Recession
- Financial crises
- High inflation
- External shocks
Effects of a Recession
- Unemployment rises
- Consumer spending decreases
- Businesses struggle
Examples of Recession
One of the most recent examples of a recession is the 2008 financial crisis. It was caused by the housing market collapse and led to a global economic downturn.
Case Study: The Great Depression
The Great Depression in the 1930s was one of the worst recessions in history. It lasted for over a decade and had devastating effects on the global economy.
Statistics
According to the National Bureau of Economic Research, there have been 33 recessions in the United States since 1857. The average length of a recession is about 11 months.
