Question 1

Q: What exactly is a recession?

Accepted Answer

A common rule of thumb is "two consecutive quarters of negative economic growth" as measured by GDP . However, the official arbiter in the U.S. is the National Bureau of Economic Research (NBER). The NBER defines a recession as "a significant decline in economic activity that is spread across the economy and lasts more than a few months." They look at a broader set of indicators including employment, personal income, industrial production, and consumer spending .

Question 2

Q: Who officially decides if the U.S. is in a recession?

Accepted Answer

The NBER's Business Cycle Dating Committee is the unofficial but widely accepted authority. They are a group of economists who analyze economic data to determine the exact months of peaks (the start of a recession) and troughs (the end) . This determination is often made months after a recession has begun, as it takes time for definitive data to emerge

Question 3

Q: What is the difference between a recession and a depression?

Accepted Answer

A depression is a much more severe and prolonged economic downturn. There is no precise quantitative definition for a depression, but the most famous example is the Great Depression of the 1930s, which saw a far deeper and longer-lasting contraction than any recent recession. Economists generally use the term "recession" to avoid inciting panic about a potential depression .

America Recession

America Recession

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