Economic recession is an event that nobody seems to be happy hearing. Every time recession is being mentioned in casual conversations, it seems that everybody participating shudder in fear anticipating the worst. An economic recession is an economic slowdown that happens in two consecutive quarters. Some economists would say that this is associated with series of events that generally recognized to be “market correction”. What is this series of events?
An economic recession happens when there is more supply than the actual demand of the product. This leads to a decline in the gross domestic product. What happens during economic recession is that it provides a “cooling off” period for creating on new products that will interest the consumers and of necessity.