A recession is a decline in economic activity lasting several months, usually caused by events such as a financial crisis or supply chain disruption
. The National Bureau of Economic Research (NBER) defines a recession as a significant decline in lasting more than a few months, visible in industrial production, employment, real income, and wholesale retail trade. It is caused by a chain of events in the economy, such as disruptions to the supply chain, a financial crisis, or a world event. A recession can also be triggered after an inflationary period
. Other factors that can cause a recession include sharp changes in the prices of inputs used in producing goods, such as a steep increase in oil prices, which can lead to a decline in aggregate demand
. A country's decision to reduce inflation by employing contractionary monetary or fiscal policies can also trigger a recession when used excessively
. There are two general types of causes of economic recession: supply shocks and demand shocks. A supply shock occurs when something reduces the supply of goods and services, while a demand shock occurs when something reduces the demand for goods and services
