Do We Actually Need Recessions?: What is a Recession?

The video tutorial explains the concept of recessions, highlighting that while two quarters of negative growth is a common measure, it is more a symptom than a cause. Recessions can be caused by supply shocks, such as natural disasters, or demand shocks, which are more common today. The video uses a hypothetical island to illustrate supply side recessions and discusses how consumer confidence affects demand side recessions.

What role does consumer confidence play in demand-based recessions?

Explain how reduced consumer spending can lead to a recession.