recession causes

What Leads To A Recession?

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What Leads To A Recession? Recessions can be caused by an overheated economy, in which demand outstrips supply, expanding past full employment and the maximum capacity of the nation’s resources. Overheating can be sustained temporarily, but eventually spending will fall in order for supply to catch up to demand. What causes recession in an economy?

What Causes Recessions And Depressions?

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What Causes Recessions And Depressions? What causes recessions and depressions? However, most recessions are caused by a complex combination of factors, including high interest rates, low consumer confidence, and stagnant wages or reduced real income in the labor market. Other examples of recession causes include bank runs and asset bubbles (see below for an explanation