What is a recession and what is its causes?

It is a general slowdown in economic activity.

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, 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.

Its slow down of economic activity because of the following.

1- Inefficiency of Regulatory Authority

2- Lack of incentive schemes for investors

3- Delay in introduction of attractive tourism policies

4- Political unrest.

5- Supply of commodities ththan required demands

“A recession is 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.

A recession is a period of negative economic growth which could have many causes. It is primarily caused by the fall of the aggregate demand.

high inflation and low gdp

Economic recession is a period of general economic decline and is typically accompanied by a drop in the stock market, an increase in unemployment, and a decline in the housing market. Generally, a recession is less severe than a depression. The blame for a recession generally falls on the federal leadership, often either the President himself, the head of the Federal Reserve, or the entire administration.

Factors That Cause Recessions:

• High Interest Rate: High interest rates are a cause of recession because it limits liquidity, or the amount of money available to invest.
• Increased Inflation: Inflation refers to a general rise in the prices of goods and services over a period. As inflation increases, the percentage of goods and services that can be purchased with the same amount of money decreases.
• Reduced Consumer Confidence: If consumers believe the economy is bad, they are less likely to spend money. Consumer confidence is psychological but can have a real impact on any economy.
• Reduced Real Wages: Real wages refers to wages that have been adjusted for inflation. Falling real wages means that a worker's paycheck is not keeping up with inflation. The worker might be making the same amount of money but his purchasing power has been reduced.

Recession is defined as "a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real gross domestic product (GDP), real income, employment, industrial production and wholesale-retail sales". More specifically, recession is defined as when businesses cease to expand, the GDP diminishes for two consecutive quarters, the rate of unemployment rises and housing prices decline.

Many factors contribute to an economy's fall into a recession, but the major cause is inflation. Inflation refers to a general rise in the prices of goods and services over a period of time. The higher the rate of inflation, the smaller the percentage of goods and services that can be purchased with the same amount of money. Inflation can happen for reasons as varied as increased production costs, higher energy costs and national debt.

In an inflationary environment, people tend to cut out leisure spending, reduce overall spending and begin to save more. But as individuals and businesses curtail expenditures in an effort to trim costs, this causes GDP to decline. Unemployment rates rise because companies lay off workers to cut costs. It is these combined factors that cause the economy to fall into a recession.

Recession means a decline in GDP of a State, or a negative growth in real economic growth for two or more consecutive Of the year.

Economic recession is a period of general economic decline and is typically accompanied by a drop in the stock market, an increase in unemployment, and a decline in the housing market. Generally, a recession is less severe than a depression.

Factors That Cause Recessions:

1. High Interest Rate

2. A stock market crash

3. A slowdown in manufacturing orders

4. Increased Inflation

5. Increased Inflation

6. Reduced Real Wages

7. Deregulation

Agreed with colleagues answers

Recession in general terms means receding meaning " to decline"...

Hence as per economic terms ,it means decrease in the economic activity of a particular place or country between two consecutive quarters

It generally leads to financial crisis in the country and advesely the rise in prices of essential commodities .

Some of the factors could be as follows :

1) Financial crisis,

2) Decrease in demand and supply or vice versa 

3) War between countries also leads to the same .