What defines a recession?

A general decline in economic activity, a contraction in the business cycle is known as recession. This decline in economic activity is spread over a few months, and there will be decline in industrial productivity, real income, real GDP, employment, etc. You can read about the Inflation in Economy- Types of Inflation, Inflation Remedies [UPSC Notes] in the given link.

Recession could happen due to pandemic, adverse supply shock, trade shock, financial crisis etc.

Further readings:

  1. Inflation Targeting: Methods, Drawbacks and Benefits
  2. Consumer Price Index (CPI) – CPI and its Types [USPC Indian Economy Notes]

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