- October 26, 2022
- Posted by: OptimizeIAS Team
- Category: DPN Topics
Context: JP Morgan Chase CEO Jamie Dimon and his Goldman Sachs counterpart David Solomon said a recession in the US and Europe is increasingly likely.
- Recession refers to a phase of the downturn in the economic cycle when there is a fall in the country’s GDP for some quarters.
- It begins after the economy reaches a peak of activity and ends as the economy reaches its trough.
- A common rule of thumb for recessions is two quarters of negative GDP growth.
- A recession is a period of decline in total output, income, employment and trade, usually lasting six months to a year.’