Apr 12, 2025
This means that the average person won't be able to spend money like they would during boom times
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Income will decrease as unemployment rises. Therefore, many people will have less money to spend on goods and services.
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Less money means less spending, leading to lower demand. spending will go down
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The stock market will drop. A recession is usually followed by a stock market crash, where the index loses 25% or more of its value
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taxes start going up on everything from groceries and clothing to electricity.
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Industries that depend on consumer spending will decline during recessions. This means less demand for products and services, and fewer jobs
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Demand for goods is going down because people are less likely to spend money. People will only buy what they absolutely have to
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With recessions come layoffs. When the economy is struggling, businesses have less revenue and start laying off workers
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During recessions, new industries often emerge. For example, during the Great Depression, car sales skyrocketed, and other consumer-focused industries boomed.
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