- Failure to raise interest rates when needed
- High interest rates
- Large losses in the business sector
- Increased cost of everyday items
- Drop in the value of savings and real property
- Retirement funds in stocks will show a decrease in value
- Rise in unemployment
The definition of an economic recession is a slowdown in the Gross Domestic Product resulting from less production, less consumer spending and a rise in unemployment over a period of six to twelve months.
Causes of Recession
Economists have varying theories on the measurable causes of an economic recession because many of the factors can be psychological on the part of investors. However, there are some tangible causes of recession.
Personal Effects of a Recession
An example of an economic recession is a six month period of raising unemployment, reduced production and a negative growth in overall business sales.