Inflation and Recession

Inflation is when prices increase and the value of money decreases.Eg:If I could buy a pen for £1 on Monday but on Tuesday it cost £2 that would be a part of inflation. The other part of inflation would be that on Monday I earned £10 as a teacher but on Tuesday I earned £20 but what I earned on Monday and Tuesday were worth the same amount because of inflation.

Recession is when people are scared that there won't be enough money to go round. The effect of this is that people are scared to spend money which means that they won't go on holidays meaning hotels and airlines won't make enough.People also won't want to buy things from shops that they won't need.Therefore people will lose their jobs which will make what everyone feared was going to happen actually happen.