Businesses typically boost output during an economic boom to keep up with demand from customers. A recession might result from an overabundance of products and services that aren't used when demand peaks and begins to drop.
When there is a broad fall in economic activity, there is a recession, which is a business cycle contraction. Recessions often start when consumer spending falls dramatically across the board.
A 2 percent decrease in GDP is typically a sign of a recession. The usual output costs is close to 5% in cases of severe recessions. Although the reduction in consumption is frequently modest, the declines in industrial production and investment are much greater than those in GDP.
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