Professional Documents
Culture Documents
Recession
Recession
“Recession”,
we need to understand the
market
economy;
A] TWO STAGES OF MARKET ECONOMY
DEPRESSION
E2] LOW
E1] OVER
CONFIDENCE
PRODUCTION
LEVEL
E] Why Recession happens?
E1] OVER
PRODUCTION
Meals supplying company Demand for other goods Started saving money
got the hit come down instead of spending
Producers; Consumers;
Can produce and Can decide to
sell at their prices buy or not;
If we advise our people to save money, then, the multiplication effect is that
the demand will not pickup and recession will continue; Very peculiar!!!!! But,
am not misguiding you; Just think from a macro level, if everybody in the
country stops spending, what will happen?