E-Answer.Net

A recession is a decline in economic activity that lasts long enough to be a significant event. One common definition of a recession is a decline in GDP that lasts for two or more consecutive quarters. Some economists argue that such definitions are arbitrary and that there is no qualitative difference between a recession and a depression (which is still more prolongued).



Recessions are often global as economies are now intertwined. A recession in one economy affects all the countries it buys from, by reducing demand for their products.



This has the effect of reducing production, the laying off of staff, closure of businesses and the increase in unemployed personel.



This then causes slowdowns in the housing market and the repossession of homes where people can no longer afford to pay mortgages.

In macroeconomics, a recession is generally associated with a decline in a country's real gross domestic product (GDP), or negative real economic growth. According to one widespread definition, a recession occurs when real growth is negative for two or more successive quarters of a year. However, there are differing definitions: In the United States, the National Bureau of Economic Research's (NBER) Business Cycle Dating Committee ultimately decides whether the economy has fallen into a recession. The NBER defines a recession as "a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production and wholesale-retail sales."[1]



A recession may involve simultaneous declines in coincident measures of overall economic activity such as employment, investment, and corporate profits. Recessions may be associated with falling prices (deflation), or, alternatively, sharply rising prices (inflation) in a process known as stagflation. A severe or long recession is referred to as an economic depression. Although the distinction between a recession and a depression is not clearly defined, it is often said that a decline in GDP of more than 10% constitutes a depression.[2] A devastating breakdown of an economy (essentially, a severe depression, or hyperinflation, depending on the circumstances) is called economic collapse

Its a lack of money in the country- being made, being brought into the country, being spent. People cannot afford their lifestyles, companies cannot afford their overheads. The more publicity that "recession" gets and the more rumours that spread, the less confidence in the economy and less money is invested and spent- it can be a self fulfilling prophecy.

Its not as doom and gloom as people think, it will mean hard times for some, but for others it will mean a career change.

domino affect.



interest rates go up/ food bills/petrol

= people don't move house

= don't do up new house

= don't buy new kitchen/carpets/bathrooms

= DIY stores let go of staff

= unemployed have less money to spend

= can't buy new cars/clothes/holidays

= manufactures lay off staff

= unemployed can't pay mortgage

= all the above again

and again

and again



until WE ALL STAY VERY STILL AND MAKE NO NEW FINANCIAL COMMITMENTS, WHICH FEEDS THE SITUATION, UNTIL IT'S OVER and then we all crawl out from under our stones and look over the devastation and pick up the pieces.

this is a lot to go into but to give you an idea lots of firms lay of people as they get short of work so there will be a lot of people looking for a job that is just one thing that will affect you

A Recession is defined here as two quarters of the year with zero or negative ecomnomic growth.

Recession is defined by the succession of two months with negative economic growth..

no job , no work , no money ,



you cannot run a car , put the heat on or go out , eat cheaply and badly