News:The International Monetary Fund(IMF) has said that the world has entered into a global recession due to the coronavirus crisis.
- A recession is a period when economic activities are in a general decline typically accompanied by unemployment, falling income and consumer spending.
- To overcome recession, countries generally react by loosening their monetary policies by infusing more money into the system.
- The Financial crisis of 2008 is the most recent example of a recession.
- Depression:It is a deep and long-lasting recession that lasts for many years.During this period, the decline in GDP exceeds 10% and an unemployment rate that touches 25%.