A recession is defined as a slowdown in economic activity and reduction in demand that leads to falling prices, business closures, and lack of trust in the economic system. Recessions are typically caused by bubbles bursting, like the fall in real estate prices that caused banking failures in the 1930s and 2008. The impacts of a recession include widespread job losses, company closures, economic crises in many countries, currency devaluations, and high inflation with low demand. To combat recessions, governments work to increase liquidity by cutting interest rates, reducing taxes, and implementing relief packages to boost industries and confidence.