A recession is an economic downturn typically characterized by shrinking levels of economic output, employment, and trade, as well as declining prices. When economies experience a prolonged recession, they typically enter a period known as a depression. Although there is no single cause of a recession, there are a few major factors that are common to most recessions. The first contributing factor to a recession is an economic slowdown. This means that demand for services and goods has declined, which leads to a decrease in profits and wages, as well as an increase in unemployment. This can cause a ripple effect as consumers may cut back on spending, leading to a decrease in demand and, ultimately, a recession. On the other hand, when there is an economic boom, demand can remain high, causing companies to expand and hire, leading to increased profits and low unemployment. Government policies can also be major drivers of a recession. When governments make changes to taxation or regulatio...