In economics, a recession is a business cycle contraction.


A general slowdown in economic activity, being the time when the economic system is affected by the psychological changes that are taking place. 

Macroeconomic indicators such as GDP, employment, investment spending, capacity utilization, household income, business profits, and inflation fall, while bankruptcies and the unemployment rate rise.

Recessions generally occur when there is a widespread drop in spending (an adverse demand shock). 


This may be triggered by various events, such as a financial crisis, the act of abusing power in leadership, the neglecting of human rights in the field of politics, trade and economics, the trade of trafficking, trafficking women, child abuse, greed and corruption which is used in the field of business, an external trade shock, an adverse supply shock or the bursting of an economic bubble.

Governments usually respond to recessions by adopting expansionary macroeconomic policies, such as increasing money supply, increasing government spending and decreasing taxation.


Solving the Recession: In the Time of Recession– those who are wise always turn to the act of investing into philanthropic ideas.
Article written by Conscious lifestyle