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I believe recession is always a tough period that could happen to the economy as it is usually have a negative impact on the people. When recession occurred, many times the real causes of recession has been link to the economic upset. An unforeseeable situations that causes general economic interruption, such as a natural disaster or a terrorist attack and so on. Then other causal of recession are high interest rates, deflation and asset illusion.

What is Recession

Recession is a notable downturn in economic activity, which brings about negative growth to the economy and can be measured using the GDP real gross domestic product, employment, real income, etc..

Recession usually caused a great set back of economy has it is usually have a negative impact on the growth of economy.

Effect of Recession on the Economy

Just like I have mentioned above that recession is a significant period that contribute a great negative impact on the economy, then here are the effects:-

Recessions usually leads to higher rate of unemployment as the company couldn't meet up with their requirements, and losses money in the process so they can tend to reduce the numbers of workers to help them deal with the situation and in the process, the rate of unemployment continue to rise.
Recession could leads to business defeat, and liquidation as a result depreciation stipulations from the clients and businesses.

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