Why recession in 2022
Before knowing about the recession let's come to the understanding of what the business cycle is. It means , in an economy the goods and services meet the ups and downs in some situations. The repetition of the growth and fall cycle is the business cycle. There will be 4 phases in this business cycle. 1) Expansion - In this phase the goods and services cost is getting increased. This is the favorable phase for us. 2) Peak - The growth in the expansion phase reaches its peak level. 3) Recession - In this phase the production of goods getting down, so the income and job growth will decrease as well. 4) Trough - This is the bottom of recession and in this phase the economy will start recovering. This whole cycle will repeat again and again. Now come to the explanation of recession, A significant decline in economic activity that is spread across the economy and that lasts more that a few months that is what recession is. IMF pr...