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Cycle of Production Cutbacks. Companies cut production and layoff workers to reduce expenses and stabilize stock prices. Stock market crashes and companies stock prices plummet. More workers lose their jobs/less income. Consumers spend less money and buy less goods/less demand.
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Cycle of Production Cutbacks Companies cut production and layoff workers to reduce expenses and stabilize stock prices Stock market crashes and companies stock prices plummet More workers lose their jobs/less income Consumers spend less money and buy less goods/less demand Companies sales fall and stock prices decline