Both losses and profits are indicated by the rate of the growth of GDP or the Gross Domestic Product; when the GDP increases over a period of two years or so then it is said to be a growing economy and when the GDP growth rate is slowed down then it implies that it is a period of recession. It is a period of general slowdown and the main parameters of economic prosperity are affected. 

Investment decreases and people tend to invest less since they are not sure of the returns. The amount of profits made by the business sector decreases substantially since their investments does not yield any profits. An air of uncertainty looms over the air and the levels of unemployment increases to a large extent. A large number of people are left jobless due to economic recession since many major industrial houses go for labor and wage cuts to maximize their profits in order to sustain the industry.  

Some companies may also shut down their operations for an indefinite period of time due to heavy losses; even government level recovery packages cannot bail them out from such a scenario. A general trend during recession is the negative growth pattern followed by the inflationary patterns. There may be a general decrease in the price level of some commodities and services. Oil prices may fall down due to lack of demand.  

The prices of property and cars also go down since the demand for these things decrease during a period of recession. The air of uncertainty regarding the coming times force people to curtail their consumption and luxury items like cars and costly real estate goes down significantly. Production in many major companies around the world suspends their production or curtail down their production in order to cope up with the stress they receive due to economic recession.  
The demand and supply dynamics influence the markets a lot and economic recession is also influenced by the dynamics of demand and supply. The increase in demand indicates that there is a general level of satisfaction within the consumers and they feel safe to go for various expenditures.

Decrease in demand implies that the general consumer is not happy with the economic scenario and does not feel safe to investment. As a result the demand falls and the supply chain is also affected due to the initial phase of decline. Many economists say that a high growth period is often followed by a period of economic slowdown since the growth becomes beyond sustainable limits. Many economic polices can help to reverse the trend of recession; government level initiative can be the best solution to bail out an economy under recession.