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

When the economy has been in decline for two consecutive periods, we are in a **recession**. A recession is typically defined as a significant decline in economic activity across the economy that lasts more than a few months, often identified by two consecutive quarters of negative GDP growth. The term "contraction" is often used to describe the phase of declining economic activity, but "recession" is the more specific term for the situation you described. "Recovery" refers to the phase following a recession when the economy begins to grow again.