A recession is commonly defined as two straight quarters of shrinking GDP

One signal that a recession has become a depression? When GDP declines more than 10%

There’s no single definition for recessions or depressions, but both are marked by sustained periods of declining economic activity. Depressions are more severe than recessions.

Recessions are often called retroactively, rather than while they’re occurring

Because recessions are recognized when a wide array of economic factors like falling GDP and high unemployment converge, they are often officially recognized after the fact.

The clearest sign of a recession is a steady increase of job losses and high unemployment

The National Bureau of Economic Research (NBER) looks at six key economic indicators, including industrial production, to determine when the economy is experiencing a recession.

Economists define deflation as a sustained decline in prices across an economy

Deflationary periods are characterized by broad, significant price declines. The Federal Reserve can monitor deflation by tracking prices through price indexes, such as the Consumer Price Index (CPI), which characterizes the average costs for consumers each month.

Recessions are considered to be inevitable by modern economic standards

Recessions are caused by imbalances in the market and are guaranteed to happen in capitalist systems, but predicting them is a complex task.

A V-shaped recovery from a recession is the most common kind

When charted, recession recoveries resemble letters including V, U, W, L, and K. For instance, an L-shaped recovery involves a steep decline that slowly reverses.

The Sahm rule attempts to predict recessions based on unemployment trends

The US is in a recession when the average US unemployment rate over three months rises by half a percentage point from a 12-month low, according to the Sahm rule.

The US has been through 34 recessions since 1854

From 1855 to 2020, the average US recession lasted for an average of 17 months. But in the 20th and 21st centuries, the average recession length has shortened, decreasing to 14 months.

Roughly $5T of stimulus money flooded the economy during the pandemic

Recessions can last anywhere from months to years. To encourage economic growth, governments use policy levers such as lowering interest rates or introducing a stimulus. Economists credit massive stimulus funds for helping the economy quickly recover from a recession during the COVID-19 pandemic.

An inverted yield curve has preceded every recession that’s occurred in the last 50 years

Prolonged yield curve inversions can predict recessions, but even brief inversions can cause investors to react with knee-jerk reactions.

Between 2007 and 2009, the housing market saw its most significant downturn since the Great Depression: the Great Recession

The early 2000s were a prosperous period for the housing market, until some lending practices eventually destabilized it, leading to banks collapsing and people losing their homes.

Experts don’t believe upbeat tunes, called ‘recession pop,’ are legitimate recession indicators

Social media users have begun deeming pop music by the likes of Kesha and Katy Perry a “recession indicator” as they try to predict the next economic downturn.

The lipstick index is just one niche so-called 'recession indicator'

When consumers think an economic downturn is looming, the "lipstick index" economic theory argues that sales of more affordable luxury items (such as lipstick) go up. Other weird alleged recession indicators include Former Federal Reserve Chair Alan Greenspan's suggestion that men's underwear sales could help predict an economic downturn.

Read about the evolution of the S&P 500 and its recession recovery

Since the S&P 500 is considered a bellwether index (meaning it represents the health of the US economy), its value is important for investors in both bull and bear markets. The S&P 500 has been impacted by recessions and downturns, from the 1970s oil crisis to the dot-com crash of the early 2000s.

What is quantitative easing?

Quantitative easing was a relatively new method the Federal Reserve used to curb deflation during the Great Recession. In this process, a central bank digitally creates money that is used to purchase assets, usually government bonds. This lowers returns on low-risk bonds, encouraging investors to put their money in high-risk, short-term stocks, and moves money through the system.

Grief is defined as the anguish and physiological distress experienced after significant loss

It usually occurs following the death of a loved one, and symptoms may include confusion, apprehension about the future, separation anxiety, and ruminating on the past.

What are repurchasing agreements?

Repurchasing agreements are short-term trade agreements in which a dealer sells securities and agrees to repurchase them at a higher price soon after (often within 1 to 2 days). This gives dealers quick access to cash and allows the purchasing party, often the Federal Reserve, to control liquidity in securities. This can be used to alter the money supply, which is a key element in combating deflation.

Watch Ray Dalio explain how the economy works

Dalio describes the economy as a machine that runs on three main cycles: productivity growth, the short-term debt cycle, and the long-term debt cycle. Dalio says layering these three cycles on top of each other essentially creates a template for understanding changes in the economy.

A Tiger economy typically describes a booming Southeast Asian country

The term “tiger economy” has been used over the last several decades to describe a developing country experiencing rapid economic growth, often due to developing export-oriented industries and/or financial markets. The term was originally applied to Southeast Asian economies, including South Korea’s, and has since been used to describe Ireland, the Baltics, and Dubai.

Government shutdowns halt nonessential services and furlough federal workers

When Congress fails to pass a budget or stopgap funding, the government shuts down. This video explains which services stop, who is furloughed, and how shutdowns ripple through the economy and daily life.

The gig economy is a labor market in which workers earn money through on-demand jobs

These “gigs” are often temporary or flexible tasks, such as driving for Uber. Colloquially, the term “gig economy” usually refers to people doing jobs where they connect with people who request their services through an app.

North American department store retail groups report sales declined from 2018 to 2023

That's according to a recent report from Bain & Company that dives into consumer sentiment around department store shopping and explores a potential reset for the industry.

Menopause is defined as 12 months without a period

Menopause is officially when a woman stops getting her period, meaning she has stopped ovulating and can no longer get pregnant. A woman has to go a full year without bleeding or spotting to know she has hit menopause.

According to general relativity, gravitational waves are ripples in spacetime

First detected a century after Albert Einstein predicted their existence, gravitational waves transmit information about cosmological events by altering the shape of spacetime. Like ripples in water, these waves travel outward and can be detected on Earth, even for objects that do not emit light, such as black holes.

The R0 value is how epidemiologists quantify disease contagiousness

The basic reproduction number indicates the average number of people a person with a disease will infect. Measles is the most contagious disease, with an R0 of 12-18, though vaccines have significantly reduced the number of susceptible individuals.

Some coin denominations have ridges etched on their sides, partly to prevent counterfeiting, in a practice called 'reeding.'

The US dollar is the most widely circulated currency in the world, and is involved in nearly 90% of global transactions

Dozens of S&P 500 stocks, including Coca-Cola and Walmart—known as the dividend aristocrats—have increased dividends every year for 25 years

The first steps to rebuilding your credit score include getting to know exactly what's on your credit report and figuring out how far you are from the '700 club,' or 'good score' range.

Discover the catastrophic consequences of a failure of the US electrical grid—something that is more likely than many Americans think.

Gerrymandering works through two techniques: cracking opposing voters across districts to dilute their power, and packing them into a few to waste their votes in lopsided majorities.

About 12.5% of US adults experience a phobia in their lifetime, a diagnosis that hinges on the intense fear interfering with daily life and persisting for at least six months.

Coral polyps reproduce via broadcast spawning, where entire reefs simultaneously release reproductive cells for about one hour, once a year.

For centuries, it was common to sleep in two shifts: a few hours at the beginning of the night, and a longer period beginning around midnight

How Amazon operates a 'flywheel' business model, a self-reinforcing cycle that drives continuous growth

Alzheimer's can lead to brain shrinkage, with an average of around 2% of volume reduction per year

Most of the observable universe's volume consists of voids and supervoids—enormous regions of space with little to no galaxies, stars, or light.

An Ebola vaccine was developed during the 2018 west African Ebola outbreak, but the 2026 Ebola outbreak is with a different species of the virus, not the one that the vaccine is approved to treat.

An initial public offering or 'IPO' is the process of a private company becoming public by putting shares of the company on the stock market for purchase.

US housing costs have risen by roughly 175% between 1991 and 2026—but a growing number of Gen Zers are becoming homeowners anyway. In 2025, 4% of homebuyers were Gen Z, up from 3% the year before.

While El Niño moves warm Pacific Ocean waters east along the equator, La Niña moves them west, shifting where rainfall will become more common for months.

All rainbows are 'raincircles' caused by water droplets separating white sunlight into a spectrum of colors, but Earth's surface blocks the bottom half of the circle from our line of sight.

Volcanoes 'die' when their supply of magma runs out, if they are shifted away from their underlying magma reservoir, or if they get clogged by collapsing or their magma cooling back into rock.

Up to a million Girl Scouts sell about 200 million cookie boxes every spring, generating $800 million, largely because refusing a child is frowned upon

In 2026, Finland was named the world's happiest country for the ninth consecutive year based on its wealth, social safety network, and high life expectancy, among other factors.

To reduce wrinkles in clothing, research recommends gentle wash cycles with more water and tumble drying with smaller loads and longer times.

See a ranking of the best (and worst) Federal Reserve Chairs since 1914 out of the 16 men and women who have held the office since.

'Shogun,' a 1980s TV series, helped popularize sushi in the US by stimulating an American interest in Japanese culture.

Iran's Revolutionary Guard Corps is independent of Iran's regular army and is one of the most powerful and influential military-political organizations in the Middle East.

The Russia-Ukraine conflict is the largest ground war in Europe since World War II in terms of casualties, forces mobilized, and displacement of civilians.