A downturn, or decline, refers to a period of reduced economic activity, often characterized by falling GDP, rising unemployment, and decreased consumer spending. This phase can affect various sectors, leading to lower business profits and investment. During a downturn, businesses may struggle to maintain operations, and individuals might face job losses or reduced income. Governments often respond with measures such as stimulus packages or monetary policy adjustments to help stabilize the economy and encourage growth. Understanding downturns is crucial for policymakers and economists to mitigate their impacts on society.