There are times when the economy is brisk and everyone feels confident about his or her prospects for the future. As a result, they spend money.
People eat out more, buy new cars, and .
They buy houses. Then, for one reason or another, the economy slows down. Companies lay off employees and consumers are more careful about where they spend money, perhaps saving more than usual. As a result, the economy decelerates even further. If it slows enough, we have a recession.