Imagine you're playing a game with your friends. Everyone starts with some candy, that’s like money in an economy. If someone suddenly takes all the candy from the table, everyone gets sad and stops sharing. That’s like an economic crash, it happens when too much money is taken out at once or people lose confidence, making everything feel worse.
Examples
- Imagine everyone in the school goes on strike because the cafeteria ran out of pizza, it causes a big mess.
- A person who loans money to a friend might get worried if that friend doesn’t pay them back.
- If all your favorite stores close, you might not have enough money to buy anything else.
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See also
- What is recession?
- What is Irrational exuberance?
- How Do ‘Economies’ Actually Grow?
- How Does the Economy Actually Respond to Inflation?
- How Does Inflation Affect Everyday People?