Because sales are failing, businesses do what they can to reduce their spending. They lay off workers, buy less merchandise, and postpone plans to expand. When this happens, business suppliers do what they can to protect themselves. They too lay off workers and reduce spending. As workers earn less, they spend less, and business income and profits decline still more.
Businesses spend even less than before and lay off still more workers.
The economy continues to slide. Low Point, or Depression. State of the economy where there are large unemployment rates, a decline in annual income, and overproduction. Sooner or later, the recession will reach the bottom of the business cycle. How long the cycle will remain at this low point varies from a matter of weeks to many months.