1. People spend lots of money.
2. People go in to debt.
3. Government needs people to stop spending money, inflation will go up (people have to pay more for food)
4. Interest rates rise to stop people spending.
5. Things will cost more.
6. People can’t afford to pay off their debt or buy things.
7. People have to sell their houses.
8. Recession Starts.
1. Eveyone STOPS spending money and starts saving.
2. Prices have been dropping slowly as people can’t afford things anymore.
3. Economy slowly recovers and recession stops.
1. People start spending money again.
2. Cycle slowly starts again.
For more about recession read here
Wiki about recession
