Which of the sub-phases of the business cycle are we in when the economy has been in decline for 2 consecutive periods?

When the economy has been in decline for two consecutive periods, it is typically considered to be in a **recession**. A recession is characterized by a significant decline in economic activity across the economy, lasting more than a few months, and is often identified by a decrease in GDP, income, employment, manufacturing, and retail sales. If the decline continues for an extended period, it may lead to a more severe economic downturn known as a **depression**.