Two major causes of economic recessions include a decline in consumer and business confidence, which can lead to reduced spending and investment, and external shocks such as financial crises or natural disasters. For example, the 2008 recession was triggered by the housing market collapse and subsequent financial crisis, while the COVID-19 pandemic in 2020 caused a sudden halt in economic activity due to lockdowns and uncertainty. Both instances resulted in widespread job losses and decreased economic output.
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