Macroeconomics

Macroeconomics is the branch of economics focused on large scale economic factors like performance, structure, behavior, and decision making of regional/national/global economies as a whole.

Recession Inflation Cycle

A recession is defined as a significant decline in economic activity throughout an economy, visible in the changes to the GDP, employment, industrial production, retail sales, etc.

One of the major causes of a recession is inflation, where there is a rise in the cost of goods and services over a period of time.

Detecting a recession

The standard macroeconomic definition of recession is negative GDP growth occurring across two consecutive quarters. Private companies will scale back to limit risk, and spending/investment declines significantly as prices slump in response to declining demand.

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