What word describes a sustained period of economic decline? (1 point) Embargo Inflation Recession Transition

A recession is characterized by a sustained period of economic decline, often defined as two consecutive quarters of negative GDP growth. During a recession, businesses may see a drop in consumer demand, leading to layoffs and decreased production. It’s a tough time for many, but history shows that economies often bounce back with innovation and resilience! Interestingly, some famous economic downturns have led to significant changes in policies and market practices. For instance, the Great Depression in the 1930s prompted reforms like the establishment of Social Security in the United States. It’s a reminder that even tough times can spark essential changes in economic thinking!