What happens in a recession
In: Economics
Think of the economy as a body and different parts of the body are different groups of people. Money is the blood of this economy body. Blood has to flow (money being spent) through each part of the body for the economy to be healthy.
A recession is when the blood flow slows down or has stopped, so people stop spending, which means other people aren’ t payed so they stop spending too. This triggers a chain reaction to other parts of the economy body, so blood starved parts of the body start dying (businesses shut down, people layed off)
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