What is a recession?
4 cards · about a minute · 6 November 2026
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A recession is when the economy shrinks for a while.
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Businesses sell less, so hiring slows and layoffs rise.
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Central banks often cut rates to get spending going again.
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For founders: keep extra runway when the outlook is uncertain.
Test yourself
In a recession, central banks often…
- Cut interest rates
- Raise interest rates sharply
- Stop all lending
Show the answer
Cut interest rates. Cheaper borrowing helps get spending and hiring going again.
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