What is a recession?
I. The Business Cycle: A nation's economy expands and reaches a peak, then it contracts and enters a trough, and the cycle starts over again.
A. If the economy remains unhealthy for six or more months, it is considered a recession.
Peak
I. The Healthy Economy: Different parts of the economy rely on one another to stay healthy.
II. More individual income
III. More money to spend and invest
IV. Stock market up overall
V. Factory production increases
A. More people employed
Trough
I. The Unhealthy Economy: The parts interact with one another to make the economy unhealthy.
II. Stock market down overall
III. Less money to spend and invest
IV. Less individual income
V. Factory production decreases
A. Fewer people employed
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