I am doing great today, but did you know the country is experiencing a recession right now?
Hey Timmy, how´s it going?
Well, when there are two or more consecutive quarters of negative GDP growth, it is considered a recession.
What do you mean Timmy...what´s a recession?
That´s okay, have your parents explain, they´ll understand better.
I don´t understand Timmy, you´re too smart.
Stop worrying about the recession. Come play!
Later that day...
GDP stands for Gross Domestic Product and it measures the value of all final goods and services produced in a period of time. During a recession, GDP goes down.
Today Timmy was talking about recession, but I didn´t understand. What is GDP?
How does that affect us?
Due to the recession, the unemployment rates have gone up; many people at work have lost their jobs. Your father and I were lucky we didn´t but our incomes have been reduced. We are earning enough to barely get by.