Recession

RECESSION,[object Object],Group 01,[object Object]

2,[object Object],Overview,[object Object],[object Object]

Business Opportunities during recession

4,[object Object],The Colours,[object Object], Recession..?,[object Object],Cont..,[object Object],DEPRESSION,[object Object],= WHEN YOU,[object Object], LOSE YOUR ,[object Object],JOB,[object Object],RECESSION,[object Object],= WHEN YOUR NEIGHBOUR LOSES HIS JOB,[object Object],GDP is a good indicator of economy,[object Object], Other indicators could be:,[object Object], -Unemployment Rate,[object Object], -Consumption Rate,[object Object], -Actual Personal Income,[object Object], -Etc..,[object Object],If GDP is growing, then market is growing due to increased demand;,[object Object],But If the recession continues for next quarter, (>6 months) then we go through “DEPRESSION” Economy,[object Object]

5,[object Object],TWO STAGES OF MARKET ECONOMY ,[object Object],Growing Market Economy,[object Object],Declining Market Economy,[object Object]

6,[object Object],Growing Market economy,[object Object]

7,[object Object],Declining Market economy,[object Object]

8,[object Object],Why Recession happens?,[object Object],OVER ,[object Object], PRODUCTION,[object Object],LOW,[object Object], CONFIDENCE LEVEL,[object Object],PSEUDO DEMAND,[object Object],ACTUAL NEED WAS,[object Object],NOT THERE;,[object Object],WRONG PROJECTIONS,[object Object],COMPANIES ,[object Object],PRODUCED,[object Object],MORE,[object Object],A situation in which the ,[object Object],supply exceeds the nation’s ,[object Object],ability to consume what has been produced;,[object Object], Supply > Demand,[object Object]

9,[object Object],Why Recession happens?,[object Object],LOW,[object Object], CONFIDENCE LEVEL,[object Object],Word of mouth,[object Object],Assignable Cause,[object Object],Consumers Fear: Jobs; So, they have less confidence to spend money and buy goods; ,[object Object],This will result in reduction,[object Object],in demand in the market; ,[object Object],Consumers start saving money instead of spending money; ,[object Object],This is a downward spiral in ,[object Object],the economy,[object Object],Low Confidence Level ,[object Object],of Millions of ,[object Object],consumers and ,[object Object],producers after- many job cuts, Demand coming down, Companies’ bankruptcy, etc,[object Object]

10,[object Object],Why Recession happens?,[object Object],LOW,[object Object], CONFIDENCE LEVEL,[object Object],Assignable Cause,[object Object],Bad Incidences Happening,[object Object],[object Object]

Mumbai attack in India,[object Object]

12,[object Object],Terrorists’ Attack on 11th September in US,[object Object],Airline & Hotel Industries started ,[object Object],“Cost Reduction” activities,[object Object],ii] Lay off people,[object Object],i] Reduce No. of flights,[object Object],iii] Salary reduction to,[object Object],“Not laid off people”,[object Object],Low or No income to ,[object Object],spend and buy goods,[object Object],In flight meals reduced,[object Object],They became careful due,[object Object],to the fear of loss of job,[object Object],Demand for other goods,[object Object],come down,[object Object],Meals supplying company,[object Object],got the hit,[object Object],Started saving money,[object Object],instead of spending,[object Object],Catering company now,,[object Object],lays off people,[object Object],Demand for other goods,[object Object],come down,[object Object]

13,[object Object],Ripple Effect,[object Object],The hit on Airline and Hotel ,[object Object],Industries affected “Un-related” industries ,[object Object],in the end,[object Object],One industry can hit many other industries when the ,[object Object],confidence level of millions of consumers & producers,[object Object],drastically comes down,[object Object]

14,[object Object],Global Recession,[object Object],Global Recession: When global growth is less than 3%.,[object Object], - International Monetary Fund,[object Object],At the end of World War I,[object Object],1981-82,[object Object],1990-91,[object Object],2001-02,[object Object],2008-09,[object Object]

15,[object Object],RECESSION AT THE END OF WORLD WAR I,[object Object],[object Object]

In fact there were two: 1918-19, and 1920-21.

The 1920-21 recession saw a significant decline in prices.

But the decline in output was relatively mild, and the recession was short, particularly given the decline in prices.

The difference is that people expected prices to decline, so there was a downward shift in short runs aggregate supply,[object Object]

The money supply grew by less than expected.

The effect was to shift aggregate demand down.

Recession

Recession

Recomendados

Más contenido relacionado

La actualidad más candente

La actualidad más candente(20)

Similar a Recession

Similar a Recession(20)

Más de Achal Gupta

Más de Achal Gupta(7)

Último

Último(20)

Recession