A recession is when the economy slows down, like a car going from 60 mph to 30 mph. A depression is when it goes even slower, maybe all the way to a stop. Think of it as a short nap for the economy versus a long sleep.
Examples
- When your favorite toy store closes, it’s like a small recession.
- If your town loses almost all its jobs and no one can find work for years, that's a depression.
- A family having to move in with Grandma because they lost their home is like being in a recession.
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See also
- Why Do We Have Different Kinds of Taxes?
- Why Do Prices Change So Much?
- Why Do We Use Money Instead of Bartering?
- Why Do Prices Go Up So Much When There's a Shortage?
- Why Do We Have Different Kinds of Coins?
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Categories: Economics · recession,depression,economy