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Presentation on Lesson :Recession

The City School. Presentation on Lesson :Recession. Raja Hasan Khan Grade XI April 29’2022. What is Recession?. Various definitions of Recession. Recession as explained by private sector Recession as defined in Macro-economics. RECESSION AND DEPRESSION.

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Presentation on Lesson :Recession

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  1. The City School Presentation on Lesson :Recession Raja Hasan Khan Grade XI April 29’2022

  2. What is Recession?

  3. Various definitions of Recession • Recession as explained by private sector • Recession as defined in Macro-economics

  4. RECESSION AND DEPRESSION A joke that economists quote to explain the Difference between “Recession & Depression” RECESSION WHEN YOUR NEIGHBOUR LOSES HIS JOB DEPRESSION WHEN YOU LOSE YOUR JOB

  5. FACTORS AFFECTING MARKET “DEMAND & SUPPLY” Producer wants his demand to be high Consumer wants his buying cost to be low Actually, Demand is the price at which consumer is ready to buy and producer is ready to sell; Demand = Quantity But, here Demand = Price; This is because, Price decides the Quantity of Sales; Competitive Price = More Demand; IncompetitivePrice = Less Demand; Producer Price Consumer Price

  6. What happens in Recession • People buying less stuff • Decrease in factory production • Growing unemployment • Slump in personal income • An unhealthy stock market

  7. CAUSES OF RECESSION

  8. The Impact of Recession on Employment • The impact of recession is unpredictable and depends entirely on the nature of the recession. • The lessons learned on past recessions have somehow helped us trace the patterns and have given us ideas on how to solve the problem.

  9. However there are Benefits of Recession too! • It slows down the rate of inflation • Lowers interest rates • Gives chance for a better and more planned start • More competition if many large companies survive • Can lead to a more prosperous economy

  10. How to come out of recession? It is unhealthy for any nation to be in Recession; So, Government will take certain countermeasures to eliminate or reduce the Effect of recession for turnaround; Important Point: Today, it is a market Economy Producers; Can produce and sell at their prices Consumers; Can decide to buy or not; Both Producers and Consumers are free to act; Not a forced action

  11. Hence, Government does not have direct control on Producers’ & theConsumers’ behavior; But, they can influence millions of Producers & Consumers with Government’s policies; Government has 2 plans Monetary Policies (By SBP) Fiscal Policies (By Govt.) SBP manipulates the available supply of money in the country Government influences the economy by changing how it (Government) spends and collects money

  12. Fiscal Policies Government influences the economy by changing how it (Government) spends and collects money 1] Tax cuts for businesses or for individuals More money available for spending Demand picks up; Market can recover; 2] More Spending by Govt. to create jobs Individuals get salary and spend money Some income to unemployed people to spend 3] Automatic fiscal policy; Unemployment Insurance

  13. Monetary Policies Government manipulates the available supply of money in the country 1] Reduce reserve ratio More money available for bank to give loans More Disposable Income; Demand Rises; Market rescued 2] Lower the interest rates Individuals take more loan

  14. THANK YOUWE WELCOME YOUR QUERIES

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