The term recession is used when two or more consecutive quarters of GDP growth is in the negative.

GDP is the acronym of Gross Domestic Product, it is a measure of production. While India's GDP growth had peaked at 9% and it fell to 6%, then its a slowdown but for a country like US where GDP growth rate is 1% and it falls to -0.6% and stays there for two consecutive quarter at that level then US will officially be in recession.

Production for a country is measured by Gross Domestic Product (GDP): employment, investment spending, capacity utilization, household incomes, business profits, and inflation. During recession all of these production indicators fall, meanwhile bankruptcies and the unemployment rate rise.

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