Part 3 How does a recursive CTE work 

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A lot of you have asked to explain, how a recursive CTE work line by line. If you have not watched Part 2 already, I strongly recommend to watch that video first before proceeding.
In Part 2 of SQL Server Interview questions and answers video series we discussed recursive CTE to retrieve the organization hierarchy.
Let's now discuss how the CTE executes line by line.
Step 1: Execute the anchor part and get result R0
Step 2: Execute the recursive member using R0 as input and generate result R1
Step 3: Execute the recursive member using R1 as input and generate result R2
Step 4: Recursion goes on until the recursive member output becomes NULL
Step 5: Finally apply UNION ALL on all the results to produce the final output