Final answer:
A recession is a period of declining economic activity characterized by decreased business production, rising unemployment, and reduced consumer spending.
Step-by-step explanation:
A recession is a period of declining economic activity during which time business production decreases, unemployment rises, and many consumers have less money to spend. It usually lasts for six months to a year and is marked by contractions in various sectors of the economy.
For example, during a recession, companies may lay off workers, resulting in higher unemployment rates. Additionally, people may have less disposable income, leading to reduced consumer spending.
Key concepts:
- Recession: A period of decline in total output, income, employment, and trade.
- Business production decrease: Companies produce less during a recession.
- Unemployment rise: Layoffs and job cuts lead to higher unemployment rates.
- Consumer spending reduction: People have less money to spend, impacting the economy.