Economic stagnation refers to a prolonged period of little or no economic growth, typically measured by a country's gross domestic product (GDP). During stagnation, businesses may struggle to expand, leading to high unemployment rates and reduced consumer spending. This situation can result from various factors, including low investment, decreased demand, or external shocks. Governments often respond to economic stagnation with policies aimed at stimulating growth, such as lowering interest rates or increasing public spending. However, if these measures are ineffective, the economy may remain stagnant for an extended time, impacting overall living standards and economic stability.