CONCEPT

Recession

PREPOSITION
 Fall in production
 Fall in investment
 Fall in employment
 Low profit
 Low saving ratio
 Fall in business and consumer confidence
 Contraction in economic growth
 Rise in bankruptcies

THEORY

In economics, a recession is a business cycle contraction, a general slowdown in economic

activity over a period of time. During recessions, many macroeconomic indicators change in a
similar way. Investment fall due to decrease in investment production fall due to decrease in
production there is rise in unemployment and due to decrease in investment ,profit also fall.
There is low savings among people ; while bankruptcies rise because people has low income
so chances of default is more. In recession mostly investors withdraw their investment from
business because profit is low and chances of loss is more thus in recession there is
contraction in the economic growth .