how does the economy go into a recession and what are some cause, im writing a paper and am clueless...?

Answer 1

Well, when the economy slows down and prices become too high then a recession is in effect......
But you do know that isn't happening now right?
Stores are packed .people are spending money all the time., restaurants are packed, may have to wait 1 hour or more to be seated.,
The start of gas prices getting so high was led to believe a start of a recession.It didn't happen because people can still aford the gas.
The cause and efect here is gas and oil prices high, means that Oil companies raise their price, the truckers have to charge a higher price to haul it., which means the gas stations that pay the truckers have to raise their prices to the customer......And just think about all the things that run on gas !! ..It is like a domino effect....Truckers deliver all kind of goods all over America....
From toys to bricks to lumber to ? The prices are raised to cover everyones cost all the way down to the consumer (the person using the product).When the cost becomes higher all the time, like every month it goes up a lot, then over time it will become unbearablefor the consumer to pay for things.....Products won't be bought as much...Just like in Little House On the Prairie, The Laura Ingals series.......They really had it tough...They were in a bad recession..(.Hope this helps)
I think this was during the early1920s-1930s.

Answer 2

All government spending is an financial stimulus. the full federal funds pumps money into the financial device, and it hasn't helped. What makes you think of that is going to help if we do extra of what did not artwork? FDR's regulations are what made the melancholy the longest recession in U.S. historic past. He took place of work in 1933. the reality that it took till 1937 to work out a restoration shows that his regulations had already failed. asserting that extra stimulus classes could have ended the melancholy is organic conjecture.

Answer 3

To balance "supply and demand" Many times the cause is very simple(please put this in your paper) asshole politicians with their own agenda

Answer 4

If you google it, you'll get thousands of explanatory sites.