<span>A prolonged economic contraction that is not especially long or severe is called recession.
</span><span>When there is a significant decline in activity across the economy and this is lasting longer than a few months then we have recession.
</span><span>Recession is characterized with the following:
</span>drop in the following five economic indicators: real GDP, income, employment, manufacturing and retail sales<span>.</span>
Possibly more trades could take place around the world
Competition is to challenge each other .
Answer: Fiscal policy can decrease unemployment by helping to increase aggregate demand and the rate of economic growth. The government will need to pursue expansionary fiscal policy; this involves cutting taxes and increasing government spending.
