Gross domestic product contracted 8.6% in the quarter ended September, the Reserve Bank of India showed in its first ever published ‘nowcast,’ which is an estimate based on high-frequency data. The economy had slumped about 24% in April to June. , pushing the country into an unprecedented recession. “India has entered a technical recession in the first half of 2020-21 for the first time in its history,”

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Recession is a slowdown or a massive contraction in economic activities; economic indicators such as GDP, corporate profits, employments, industrial production, real income, and wholesale-retail trade etc., fall; short-term fluctuations when major macroeconomic indicators have shown slowdowns or even outright declining performance.

Economies generally react by loosening their monetary policies by infusing more money into the system, i.e., by increasing the money supply.

A depression is a deep and long-lasting recession; a severe decline that lasts for many years.

Stagflation is a combination of stagnant economic growth, high unemployment, and high inflation. It creates slow economic growth or a recession, high unemployment, and rising prices. Stagflation is caused by conflicting contractionary and expansionary fiscal policies

Inflation reduces the purchasing power of each unit of currency, which leads to increases in the prices of goods and services over time.; means you have to spend more to fill your gas tank, buy milk. In other words, it increases your cost of living. Central Banks uses monetary policy to manage inflation.