Recession is a business cycle contraction when there is a general decline in economic activity. A recession occurs when there is a widespread drop in spending which may be due to various events like financial crisis, an external trade shock or bursting of an economic bubble. During a recession, we find a steady decline in GDP, income, employment, sales, and industrial production. The recession hit the United States in December 2007 and lasted for about 18 months (June 2009)