Can someone explain how a recession happends. Please can you explain in simple terms.?

Answer 1

Interest rates go up, mortgage payments get too high, business's are hit so they make cut backs peoples wages are cut or they get laid off..

The housing market is flooded with everyone trying to sell to ease the debt house prices fall, so people end up in negative equity,(which is your house is worth less than your mortgage)

Not a good situation so lets hope it does not happen

Answer 2

The standard newspaper definition of a recession is a decline in the Gross Domestic Product (GDP) for two or more consecutive quarters.
For a region, the GDP is "the market value of all the goods and services producted by labour and property located in" the region, usually a country. It equals GNP minus the net inflow of labour and property incomes from abroad.
So when the value of goods and services fall for two consecutive periods of 3 months then we are technically in a recession. The GDP figures are produced by the Office for National Statistics and are widely published in Newspaper and TV so you will find them there.

Answer 3

there are no individual reasons for recession and they cannot be explained by exact science.
Often, combinations of population level, industrial output, retail output along with management of the economy are the cause.
Invariably , effects at national level are symptomatic of global recession

Answer 4

banks push up intrest rates so no one can afford to borrower money to buy stuff and if there`s no demared for it no need to make it everyone is out of work

Answer 5

when a state removes itself from the nation and becomes it's own nation...

Answer 6

a country loses control of its own imports and exports and life has to get expensive to survive. we are all made to pay for poor management by banks and politicians protecting themselves