An economic crisis is a situation where the economy of a country experiences a sudden downturn, leading to significant financial instability. This can result from various factors, such as high unemployment rates, declining consumer confidence, or a collapse in the stock market. During an economic crisis, businesses may struggle to survive, and individuals often face job losses and reduced income. Governments typically respond to an economic crisis by implementing measures to stabilize the economy. This can include monetary policies, such as lowering interest rates, or fiscal policies, like increasing government spending. The goal is to restore confidence and promote growth, helping the economy recover from the downturn.