Really simply please!
In: Economics
The economy has a lot of factors that go into play here, but basically a recession occures when there isn’t enough spending. When unemployment is too high. People don’t have money to spend. Therefore companies aren’t making as much money, which in turn, gets resolved by more layoffs to recover the losses. More people without jobs means that companies have less potential customers. Which is why Ford was a big landmark company since they retained employees and kept wages consistent back in the early 19xx’s.
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