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recession

World Encyclopedia | 2005 | © World Encyclopedia 2005, originally published by Oxford University Press 2005. (Hide copyright information) Copyright

recession In economics, phase of the business cycle associated with a declining economy. Its manifestations are rising unemployment, contracting business activity, and decreasing purchasing power of consumers. Government policy, such as cuts in government spending or taxes, may be used to stimulate and expand the economy during a recession. If a recession is not checked, it can degenerate into a depression.

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