What is recession?

What factors cause recession?

  • what is recession what factors cause recession ? can we make our economy recession proof? does recession affect all aspects of life in a country?

  • Answer:

    Greed mostly and loss of faith of investors in markets mostly

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Other answers

Deleveraging of debt. No, you cannot make your economy "recession proof". No recession does not affect all aspects of life in a country. A lot, but not all.

SDD

Recessions are the result of an economy self corecting itself from an expansionary boom or "bubble". There is no "recession proofing" our economies because recessions are healthy corrections to an other wise "sick" economy that can not be sustained, that is why it crashes causing a recession. Recessions do affect all aspects of life in a country because we are all linked economically. During a recession people spend less money because they are saving for upcoming hard times which then affects businesses because they are purchasing less goods. The businesses then cut back on the number of employees to reduce costs to counter the loss of revenue. Those laid off workers then spend less because they no longer have an income, and the cycle repeats untill it eventually stablizes.

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