Recession

4. IT WHAT HAPPENS WHEN YOUR NEIGHBOUR
LOSES HIS JOB

5. THAT’S NAMED

7. RECESSION

9. 1. Growing Market Economy
2. Declining Market Economy

10. Growing Market Economy

11. Declining Market Economy

12. There are Two Fctors that Affects The Market
1. DEMAND
2. SUPPLY
------------Producer Price
-----------Consumer Price

13. “ SO, WHAT IS RECESSION? “

15. WHAT IS GROSS DOMESTIC PRODUCT ?
GDP IS A GOOD INDICATOR OF ECONOMY
OTHER INDICATORS COULD BE:
-UNEMPLOYMENT RATE
-CONSUPTION RATE
-ACTUAL PERSONAL INCOME

16. “
”
IF GDP IS GROWING,
THE MARKET IS GROWING
DUE TO INCREASED DEMAND

17. WHY DOES RECESSION HAPPEN?
1. OVER PRODUCTION:
A SITUTION IN WHICHIN WHICH SUPPLY EXCEED THE NATION’S ABILITYTO CONSUME WHAT HAS BEEN PRODUCED.
(I.E)WHEN SUPPLY >DEMAND
2. LOW CONFIDENCE LEVEL IN THE CONSUMERS:
THE CONSUMERS LOSE THEIR CONFIDENCE IN THE COMPANY AND SELL
SELL THEIR SHARES.
THEY ALSO FEAR THATTHEY MAY LOSE THIR JOBS AND EVENTUALLY HAVE LESS CONFIDENCEIN
SPENDING MONEY.

18. RECESSION DUE TO ASSIGNABLE
CAUSE
RECESSION ALSO OCCURS DUE TO BAD
INCIDENTS SUCH AS
THREATS AND RUMOURS THAT LEAD INTO A KIND OF WAR.
EXAMPLE:
SEPTEMBER 11 TERRORIST ATTACK IN US,
INTERNATIONAL AIRPORT BLOCK IN THAILAND,
MUMBAI ATTACKED IN INDIA.

19. SEPTEMBER 11
TERRORIST ATTACK IN US
 CREATED FEAR IN PEOPLE
 PEOPLE CANCELLED THEIR TRAVEL
PLAN
 RESULTED IN LOW OCCUPANCY RATE
 AIRLINES &HOTEL INDUSTRIES BADLY
HIT
 AIRLINES &HOTEL INDUSTRIES OFFERED
DISCOUNT, GIFT COUPONS, TO ATTRACK
PEOPLE
BUT STILL NO IMPROVEMENT IN
OCCUPANCY RATE
 AIRLINES &HOTEL INDUSTRIES STARTED
“COST REDUCTION” ACTIVITES.

21. INDICATORS TO SAY NATION IS IN RECESSION
 PEOPLE BUYING LESS STUFF
 DECREASE IN FACTORY PRODUCTION
 GROWING UNEMPLOYMENT
 SLUMP IN PERSONAL INCOME
 AN UNHEALTHY STOCK MARKET.

23. “AS SURE AS THE SPRING WILL FOLLOW
THE WINTER,
PROSPERITY AND ECONOMIC GROWTH
WILL FOLLOW RECESSION.”
-BO BENNETT