What Causes a ‘Recession’ and How Is It Different From a Depression?

A recession is when the economy slows down, like a car going from 60 mph to 30 mph. A depression is when it goes even slower, maybe all the way to a stop. Think of it as a short nap for the economy versus a long sleep.

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Examples

When your favorite toy store closes, it’s like a small recession.
If your town loses almost all its jobs and no one can find work for years, that's a depression.
A family having to move in with Grandma because they lost their home is like being in a recession.

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Categories: Economics · recession,depression,economy