User:Hachaudhari/Recession

=== A recession has many attributes that can occur simultaneously and includes declines in component measures of economic activity (GDP) such as consumption, investment, government spending, and net export activity. These summary measures reflect underlying drivers such as employment levels and skills, household savings rates, corporate investment decisions, interest rates, demographics, and government policies. ===

The European Union adopted a definition similar to that of the NBER, using GDP alongside additional macroeconomic variables such as employment and other measures to assess the depth of decline in economic activity.

=== A July 2012 survey of balance sheet recession research reported that consumer demand and employment are affected by household leverage levels. Both durable and non-durable goods consumption declined as households moved from low to high leverage with the decline in property values experienced during the subprime mortgage crisis. Further, reduced consumption due to higher household leverage can account for a significant decline in employment levels. Policies that help reduce mortgage debt or household leverage could therefore have stimulative effects. ===


 * In terms of financial indicators - A significant increase in loan defaults or a tightening of credit conditions by financial institutions, leading to a decrease in business investment and consumer spending.