This refers to periods in which the economy is in decline with at least two consecutive quarters of negative economic growth, or based on the gross domestic product (GDP).
Periods of recession typically see high and rising levels of unemployment with stagnant or falling wages, resulting in lower standards of living and falling retail sales. In turn these can lead to falling business sales, reduced investment and business cut backs. As businesses become less viable the cost of borrowing may rise, leading to increased costs and inflation. Businesses with large cash reserves may be able to take advantage of a period of recession to buy out competitors or use their increased buying power to obtain better deals on purchases.
Recession is a term normally found in economics and financial management;
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