ELI5: recession
// explanation
What is a recession?
A recession is when the economy gets sick and stops growing for a while [2][5]. It's like when a store that's been selling lots of toys suddenly has fewer customers and has to slow down its business [4].
Why does it happen?
Recessions happen when people and businesses stop spending money and investing as much as they used to [5]. This causes companies to make less stuff and hire fewer workers [2].
What does it feel like?
During a recession, it feels like things are getting harder - more people lose their jobs, stores have fewer customers, and families have less money to spend on fun things [5].
How long does it last?
A recession lasts more than a few months, but it's not permanent [2]. Eventually the economy starts growing again and things get better [3].
// sources
This paper analyzes the magnitude and sources of long-term earnings declines associated with graduating from college during a recession.
Feb 1, 2007 ... A recession is a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, ...
A: The NBER's traditional definition of a recession is that it is a significant decline in economic activity that is spread across the economy and that lasts ...
Apr 13, 2018 ... In general usage, the word recession connotes a marked slippage in economic activity. While gross domestic product (GDP) is the broadest ...
By Stijn Claessens and M. Ayhan Kose - It is a sustained period when economic output falls and unemployment rises.
Video by Illustrate to Educate
Video by Johnny Harris
Video by TED-Ed
