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| Topic: |
Business
|
| Number of pages / Number of words: |
8 / 2037 |
Essay's paper body
As consumption begins to lag behind production surpluses begin to build and businesses are then forced to Liquidate these overages in order to keep current with their obligations. During this Liquidation period too quite often there are massive lay off for the workers thus the economy tightens its belt even further...
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When this condition continues to worsen, factories begin closing, workers are displaced, businesses close their doors, money lenders tighten the requirements for borrowing, people hoard money and a Depression then is in full swing.
Furthermore, it's during the Depression Phase that a nation becomes more vulnerable to outside aggression from their enemies...
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