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- Learn more:✕This summary was generated using AI based on multiple online sources. To view the original source information, use the "Learn more" links.Economic output, employment, and consumer spending drop in a recession. Interest rates are also likely to decline as the central bank (such as the U.S. Federal Reserve Bank) cuts rates to support the economy. The government's budget deficit widens as tax revenues decline, while spending on unemployment insurance and other social programs rises.www.investopedia.com/terms/r/recession.asp
The main costs of a recession will be: Unemployment Fall in income – shorter working week. Rise in poverty Fall in asset prices (e.g. fall in house prices/stock market) Increased inequality and an increase in relative poverty Higher government borrowing (less tax revenue) Permanently lost output.
www.economicshelp.org/blog/5618/economics/neg…The main effects of economic downturns are:
- Rising unemployment: As businesses start to lay off workers, unemployment rises. ...
- Falling house prices: This is usually caused by a combination of rising unemployment and falling consumer confidence. ...
modernrecruiters.com/what-is-an-economic-downt…Recessions result in higher unemployment, lower wages and incomes, and lost opportunities more generally. Education, private capital investments, and economic opportunity are all likely to suffer in the current downturn, and the effects will be long-lived.www.epi.org/publication/bp243/An economic downturn affects people’s lives in many ways: through higher unemployment, reduced economic activity, reductions in income and wealth, and greater uncertainty about future jobs and income.www.economicsobservatory.com/what-are-effects-r… - People also ask
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