1) Recessions are caused by a decline in overall demand for goods and services, both consumption and investment. This can be triggered by various events like the end of wars, rising commodity prices, or increased interest rates. 2) Governments can help cure recessions through stimulus packages and automatic increases in benefits to boost demand. However, governments often underestimate the decline in demand and are slow to respond. 3) While recessions cannot be fully prevented due to uncertain economic conditions, governments should aim to reduce the impact of large shocks through financial regulation to limit high leverage and risky lending practices.