What is a recession?
Economy is all about the trade of goods and services.
The economy of a certain place is affected by how much buying, selling, and trading is being done. Depending on how much activity there is, the economy can work at faster or slower speeds. At times it can be busy, full of transactions, very fast, and constantly moving upwards as people buy, sell, and trade a lot.
At other times, it can be quieter, have fewer transactions, be slow, and take a dip downwards as people buy, sell, and trade less. It's a normal part of the economy for its speed to go from fast to slow, and then back again!
When the speed of the economy is slower and people are buying or selling less stuff, grown-ups refer to it as a recession.
Sometimes grown-ups might worry about a recession because it changes the way certain businesses work, but its still a normal part of a cycle that happens from time to time! Just like in every cycle, the faster economy will eventually come back again, and the recession will end!
by Mya Kagan (Whyzz writer)
Exploration
Cycles and systems!
Just like the economy is something which runs in a cycle, there are other things in life which run on cycles and happen again and again too! Can you think of any examples??
One great example of a cycle is the seasons! Winter, spring, summer, and fall cycle around and around, and happen in that same order year after year! Can you think of anything else that happens like a cycle?