Share This Article:

Economic Definition of recession. Defined.

Offline Version: PDF

Term recession Definition: The common term used for the contraction phase of the business cycle. A general period of declining economic activity. During a recession, real gross domestic product declines by 10 percent or so and the unemployment rate rises from it's full employment 5 percent level up to the 6 to 10 percent range. Inflation tends to be low or non-existent during a recession. Recession last anywhere from six to eighteen months, with one year being common.


« realism of perfect competition | recessionary gap »


Alphabetical Reference to Over 2,000 Economic Terms