WHAT IS A RECESSION

Think of it like an economic storm hitting the country. When a recession occurs, everything goes badly: production falls, unemployment rises, and businesses decline.

Investors are making smart moves. They spread their investments to various places. So, if one place experiences problems, investments elsewhere can remain safe. They also use special financial tools to protect their money from adverse changes in the market.

The government took strong action. They provide cash to financially struggling companies. Also, they can reduce taxes or increase their spending to encourage people to spend their money. Central banks reduce interest rates to make people more interested in borrowing and investing their money.

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