What happens when an economy is in a recession?

Among the many effects of an economy in recession are interest rates falling, profits plunging, unemployment rates rising, and the stock market becoming unstable. People tend to hold onto their money rather than spend it, and financial fears are prevalent. read more

Quick Answer. Among the many effects of an economy in recession are interest rates falling, profits plunging, unemployment rates rising, and the stock market becoming unstable. People tend to hold onto their money rather than spend it, and financial fears are prevalent. read more

A recession is when the economy declines significantly for at least six months. That means there's a drop in the following five economic indicators: real GDP, income, employment, manufacturing and retail sales. People often say a recession is when the GDP growth rate is negative for two consecutive quarters or more. read more

An economic recession is typically defined as a decline in gross domestic product (GDP) for two or more consecutive quarters. GDP is the market value of all goods and services produced within a country in a given period of time. read more