A recession is a period of economic decline, typically defined as two consecutive quarters of negative Gross Domestic Product (GDP) growth. During a recession, businesses may experience lower sales, leading to reduced production and potential layoffs. This can result in higher unemployment rates and decreased consumer spending, further deepening the economic downturn. Recessions can be caused by various factors, including high inflation, rising interest rates, or external shocks like a financial crisis. Governments and central banks often respond to recessions with measures such as lowering interest rates or implementing stimulus packages to encourage spending and investment, aiming to revive the economy.