27
Lesson 27 of 84 · Economics
Recession: When the Economy Slows Down
Recessions are periods when the economy shrinks. Businesses may lay off workers, consumers spend less, and tax revenue drops. Recessions are a normal, if painful, part of the cycle.
Key Facts
1
Every choice has an opportunity cost.
2
Money is a medium of exchange.
3
Needs are different from wants.
Check Your Understanding
Question 1
1 of 2What happens when demand is high and supply is low?