What is Recession?
A recession is a significant, widespread decline in economic activity lasting more than a few months, typically visible in falling GDP, employment, and spending.
Example
A common rule of thumb calls two consecutive quarters of shrinking GDP a recession, though official bodies weigh several indicators.
Related terms
Inflation
Inflation is the rate at which the general level of prices for goods and services rises over time, reducing the purchasing power of money. Moderate inflation is normal in a growing economy; high inflation erodes savings.
Bear Market
A bear market is a period in which asset prices fall 20% or more from recent highs, usually amid pessimism and weakening economic conditions.