What causes economic recessions and how are they predicted?

Economic recessions happen when people and businesses stop spending as much, like when you suddenly decide not to buy candy on a snack day because your piggy bank is getting low.

Imagine the economy is like a big playground where everyone is playing. When things are going well, kids are buying snacks, parents are buying toys, and the whole place is buzzing with energy. But sometimes, people start worrying, maybe their favorite toy store closes or they hear that their friend lost their job. That worry makes them spend less, and soon the whole playground feels quieter.

Recessions are like when the playground goes from full of laughter to mostly just a few kids playing in the corner.

Now, how do grown-ups predict this? They look at clues, like how many people have jobs, how much money is being spent on snacks and toys, and even how busy the toy store is. If these signs start going down, they know it's time to get ready for a quieter day at the playground.

Sometimes, they use special tools like charts and numbers to see what might happen next, kind of like counting down before a big game starts.