HowStuffWorks "How Recessions Work"

[http://www.howstuffworks.com/] SUBSCRIBE Adventure Animals Auto Culture Entertainment Health Home & Garden Lifestyle Money Science Tech Video Shows Quizzes Business Economics Jobs Personal Finance Home / Money / Economics / Economic Concepts How Recessions Work by Tom Harris Page 1 Introduction to How Recessions Work 2 Money Makes the World Go Round 3 Producers and Consumers 4 Markets Recession Image Gallery A cyclist passes a financial display screen showing the FTSE 100. See more recession pictures . Cate Gillon/ Getty Images More on Recessions Recession Quiz What's the difference between a recession and a depression? 足足On Jan. 21, 2008, stock prices tumbled around the world. Most analysts pointed to fears surrounding the United States economy and a possible recession as the reason for the drop. Ironically, economic conditions in the United States were affecting the world economy on a day when its own markets weren't even in session -- they were closed for the Martin Luther King Jr. Day holiday. Three days later, news outlets were already reporting a new economic stimulus package , designed in part to try to prevent a recession. This isn't the first recession news in recent memory. On Nov. 26, 2001, the news media announced the United States was officially in a recession and had been since March of that year. To most Americans, this wasn't all that surprising: Rising unemployment and a weak stock market had been in the news for months. 足Both the 2008 market drop and the 2001 news blitz raised a lot of questions. Who decides when the economy is in recession, and on what grounds? What actually constitutes a recession, anyway? When a nation's economy enters a recession, is life guaranteed to get harder for most of its citizens? And how often does a recession lead to a depression ? In this article, we'll find out what recessions are, see why they occur and examine the criteria economists use to identify them. We'll also look at the effects of recession as well as explore some of the ways a country can turn the economy around again. Print Cite This! Close Please copy/paste the following text to properly cite this HowStuffWorks article: Harris, Tom. "How Recessions Work" 15 January 2002. HowStuffWorks.com. 14 August 2014. Citation & Date Feedback Page 1 Introduction to How Recessions Work 2 Money Makes the World Go Round 3 Producers and Consumers 4 Markets 5 Supply and Demand 6 What Goes Up.... 7 ...Must Come Down 8 Post 9/11 More To Explore Money Makes the World Go 'Round 10 Things You Should Buy in Bulk Fact or Fiction: Hidden Bank Fees 10 Recession-proof Businesses 10 Most Stressful Jobs in America Quiz: Building Your Nest Egg Watch retirement videos » You Might Also Like Is there a dark side to "doorbuster deals"? In the grand tradition of retail, all is not always as it seems, and the doorbuster is no exception. Before you camp out for Black Friday, brush up on your retail parlance, and discover the shady side of deals "too good to be true." How do I get a grant to volunteer? Grants by definition are given to volunteers. The idea is to provide financial help to those who are trying to make a positive impact on society. Popular Articles How to Get Power of Attorney How to Volunteer for the Olympic National Park Fact or Fiction: Volunteer Ops for Retirees Most Popular Most Watched Most Popular 10 Great Reasons to Change Jobs How do CDs (certificates of deposit) work? 10 Quick Ways to Make Money Eye On the Money: Test Your Debt Knowledge 10 Tips for Staying on Budget Most Watched Stocks and the Stock Market Credit Card Videos How to Make Millions Frugal Living Saving Money Don't Miss Stuff You Should Know: Demystifying Your World Stuff Mom Never Told You: All Things Women and Gender Stuff You Missed in History Class: Fact or Fiction? CHECK OUT OUR PODCASTS HOWSTUFFWORKS NEWSLETTER THE LATEST AND GREATEST SUBSCRIBE HOWSTUFFWORKS Adventure Animals Auto Culture Entertainment Health Home & Garden Lifestyle Money Science Tech MORE STUFF Blogs HSW Tools RSS Maps Podcasts Quizzes Newsletters Video HSW Brazil HSW China STUFF WEBSITES BrainStuff CarStuff Fw:Thinking Stuff Mom Never Told You Stuff of Genius Stuff They Don't Want You to Know Stuff to Blow Your Mind Stuff You Missed in History Class Stuff You Should Know CUSTOMER SERVICE Advertising Contact Us Help CORPORATE About Us Careers @ HSW Privacy Policy Visitor Agreement TAKE US WITH YOU FOLLOW US Copyright © 1998-2014 HowStuffWorks, a division of InfoSpace LLC