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Business cycle dating committee of the national bureau of economic research

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It increases unemployment rates. Companies stop hiring to save money in the face of lower demand. Toward the middle of a contraction, they start laying off workers, sending unemployment rates higher. An event, like a stock market correction or crash, triggers it. But the true cause precedes the well-publicized event. Businesses cut spending, then lay off workers.

Reference date (United States business cycles)

Business Cycle Dating Committee Announcement June 8, | NBER

A paid subscription to the NBER Working Papers includes online full-text access for all employees, students, and faculty at an institution. Edit email preferences for New This Week. Account log-in or creation is required. We are unable to provide hard copies to international recipients. The Digest is a free monthly publication featuring non-technical summaries of research on topics of broad public interest. A quarterly, it is distributed digitally and is free. It is distributed digitally three times a year and is free.

National Bureau of Economic Research

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In economics , a recession is a business cycle contraction when there is a general decline in economic activity. This may be triggered by various events, such as a financial crisis , an external trade shock, an adverse supply shock , the bursting of an economic bubble , or a large-scale anthropogenic or natural disaster e. In the United States, it is defined as "a significant decline in economic activity spread across the market, lasting more than a few months, normally visible in real GDP , real income, employment, industrial production, and wholesale-retail sales". Governments usually respond to recessions by adopting expansionary macroeconomic policies , such as increasing money supply or increasing government spending and decreasing taxation.

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