What is the term for a relatively short period of economic downturn?

The term for a relatively short period of economic downturn is recession. A recession is typically defined as a decline in economic activity across the economy, lasting more than a few months. It is characterized by falling GDP, reduced consumer spending, decreased investment, and rising unemployment. A recession is generally milder and shorter than a depression, which represents a more severe and prolonged economic downturn with significantly deeper impacts on the economy and society.

Stagnation refers to a prolonged period of little or no growth in the economy, which does not necessarily reflect a downturn but rather a lack of forward momentum. Expansion, on the other hand, signifies a phase where the economy is growing, marked by rising GDP and increased employment and production levels. Therefore, understanding the concept of recession helps contextualize its role as a relatively mild and brief economic slowdown compared to the more severe conditions represented by a depression.