Recession - 7/1/2011

Dear All,

RECESSION

A recession is a business cycle contraction, a general slowdown in economic activity over a period of time for more than two consecutive quarters. In other words, it can be defined as "two down quarters of GDP".

Production, as measured by Gross Domestic Product(GDP), employment, investment spending, capacity utilization, household incomes, business profits andinflation all fall during recessions; while bankruptcies and the unemployment rate rise.

Recessions generally occur when there is a widespread drop in spending often following an adverse supply shock or the bursting of an economic bubble.

For further details, visit: http://en.wikipedia.org/wiki/Recession

(According to me,

Government intervenes Recession though two packages :

1. Bailout Packages

2. Stimulus Packages.

Please correct me if I am wrong.)

Thanks and Regards,

Pratik Chheda

Article Assistant

Gokhale & Sathe

Chartered Accountants