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A '''recession''' is a decrease in an [[economy]]'s [[employment]] and output and the [[income]] of its citizens. Typically there is also a decline in personal and business optimism, and a decline in the rate of [[consumption]] and capital [[investment]] in business activity.
A '''recession''' is a decrease in an [[economy]]'s [[employment]] and output and the [[income]] of its citizens. Typically there is also a decline in personal and business optimism, and a decline in the rate of [[consumption]] and capital [[investment]] in business activity.
The generally accepted definition of a recession is based on the decline in [[gross domestic product]] (GDP) for two consecutive quarters. In the United States the [[National Bureau of Economic Research]] makes the decision on if the economy has entered a recession, and when it is completed although local areas may be impacted before the nation.
Several strategies exist for dealing with recession:
* [[Keynesian]] economics indicate deficit spending by government will deal with any short term losses by business.
* [[Supply-side economics|Supply-side]] economics indicate government tax cuts will promote business capital investment.
* [[laissez-faire]] economics recommend the government do nothing and not interfere with [[market forces]].
[[Category:Economics]]
[[Category:Economics]]