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    What Is Recession?

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    djc2010
    This document defines recession as an economy shrinking for two consecutive quarters, as measured by a decrease in gross domestic product (GDP). It discusses the history of recessions in the US since World War 2 and lists common indicators of a recession such as rising unemployment, falling consumption and income levels, and declining stock markets. The document also examines causes of recessions like overproduction when supply exceeds demand, and how governments can help countries recover from recession through fiscal policies like tax cuts and spending increases or monetary policies that manipulate the money supply.

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    What Is Recession?

    Uploaded by

    djc2010
    257 views13 pages
    This document defines recession as an economy shrinking for two consecutive quarters, as measured by a decrease in gross domestic product (GDP). It discusses the history of recessions in the US since World War 2 and lists common indicators of a recession such as rising unemployment, falling consumption and income levels, and declining stock markets. The document also examines causes of recessions like overproduction when supply exceeds demand, and how governments can help countries recover from recession through fiscal policies like tax cuts and spending increases or monetary policies that manipulate the money supply.

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    What is Recession?

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    This document defines recession as an economy shrinking for two consecutive quarters, as measured by a decrease in gross domestic product (GDP). It discusses the history of recessions in the US since World War 2 and lists common indicators of a recession such as rising unemployment, falling consumption and income levels, and declining stock markets. The document also examines causes of recessions like overproduction when supply exceeds demand, and how governments can help countries recover from recession through fiscal policies like tax cuts and spending increases or monetary policies that manipulate the money supply.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
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    Download as ppt, pdf, or txt
    257 views13 pages

    What Is Recession?

    Uploaded by

    djc2010
    This document defines recession as an economy shrinking for two consecutive quarters, as measured by a decrease in gross domestic product (GDP). It discusses the history of recessions in the US since World War 2 and lists common indicators of a recession such as rising unemployment, falling consumption and income levels, and declining stock markets. The document also examines causes of recessions like overproduction when supply exceeds demand, and how governments can help countries recover from recession through fiscal policies like tax cuts and spending increases or monetary policies that manipulate the money supply.

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    of 13

    WHAT IS RECESSION?

    By- Dattaprasad Chaudhari


    Agenda
    2

    1. Market economy
    2. What is recession
    3. History of recession
    4. Indicators of recession
    5. Why recession happens
    6. How to come out of recession
    7. Recession in India
    8. References
    Market Economy
    3

    1. TWO STAGES OF MARKET ECONOMY

    1. Growing Market Economy

    2. Declining marketing Economy

    2. TWO FACTORS OF MARKET


    1. Demand

    2. Supply
    What is recession?
    4

    Economy shrinking for two consecutive quarters (6

    months)
    Decrease in the GDP (gross domestic product)
    History of recession
    5

    US has suffered 10 recession since the end of world


    war second

    Years of recession Period of


    recession
    July 1981 – Nov 1982 14 months
    July 1990 – March 1991 8 months

    March 2001 – Nov 2001 8 months

    December 2007 current


    Indicators of Recession
    6

    •GDP

    Other indicators are


    •Unemployment rate
    •Consumption rate
    •Actual personal income
    •Stock Market
    Why Recession happens?
    7

    1. Over production Supply > Demand

    1. Word of mouth
    2. Low confidence Level
    2. Assignable causes
    How to come out of Recession?
    8

    Government has 2 plan

    Fiscal policies Monetary


    by Govt. policies
    by RBI
    Fiscal policies
    9

    Tax cut for businesses More money available


    or for individuals for spending

    More spending by Individual get salary Demand picks


    Govt. to create and spend money, up, market can
    Jobs buy goods recover

    Some income to
    Unemployment
    unemployed people to
    insurance
    spend
    Monetary policies
    10

    Government manipulates the available


    supply of money in country

    More money
    Reduce reserve available for bank
    ratio Demands
    to give loan
    pick up,
    market
    can
    Lower interest Individuals take recover
    rate more loan
    Recession in India & other countries
    Recession in India & other countries
    11

    Currently, GDP growth


    Most of the
    Slow down rate down,
    developing
    stage, not yet but still
    Economies like India,
    under around 6% in
    China, etc
    recession India

    Most of the develop Currently GDP growth


    economies like US, under rate,
    Japan, Germany recession Negative
    References
    12

    www.wikepedia.org
    www.investopedia.com
    www.recession.org
    13

    Thank you

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