E Fact of the Day: Causes of Economic Downturns

E stands for Economics

In the past, economic downturns were triggered by specific events such as war, conflict, crop failures and natural disasters.

However, in capitalist economies, the reason behind bad times are often attributed and typically linked with market forces and related government policies.

Factors such as changes in supply and demand, consumer behaviour, and their reactions to economic events can combinedly contribute to the formation of a recession, and in worst cases depression.

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