1.  Submitted To  Submitted By
Mr. Harsh Arsh Koul

2.  Deflation or Recession is a persistent
decrease in the level of consumer prices or a
persistent increase in the purchasing power
of money because of a reduction in available
currency and credit. It is a situation in which
prices and money incomes are
falling, accompanied by an increase in the
value of the monetary unit.
 Deflation happens when too less money
chases too much goods.

3.  The subprime mortgage crisis led to the collapse of
the United States housing bubble. Falling housing-
related assets contributed to a global financial
crisis, even as oil and food prices soared. The crisis
led to the failure or collapse of many of the United
States' largest financial institutions: Bear
Stearns, Fannie Mae, Freddie Mac, Lehman Brothers
and AIG, as well as a crisis in the automobile
industry. The government responded with an
unprecedented $700 billion bank bailout and $787
billion fiscal stimulus package. The National Bureau
of Economic Research declared the end of this
recession over a year after the end date.

4.  Fall in Durable consumer goods demand
 Freeze on new recruitments
 Job cuts and pay cuts
 Unsold houses (Foreclosures)
 Bankruptcies
 Stock market slide and falling investor
confidence
 Decrease in business investment.
4

5.  According to Organization for Economic Co-
operation and Development "creative work
undertaken on a systematic basis in order to
increase the stock of knowledge, including
knowledge of man, culture and society, and
the use of this stock of knowledge to devise
new applications".

6.  Research and Development should not be
stopped during recession , as in the long run
it increases the shareholders value
 It all depends on the stage where research
and development is working. If we are
working on the new product then it can help
you to come out of recession but if it is a
usual one then we should stop it.

7.  Spending cuts are not how a company can get
out of recession.
 Increasing investment in Research and
Development is important to develop
innovative products
 More generally, the researchers found, with
all else equal, in recessions the higher the
firm's market share, the more an increase in
R&D spending increases its profits

8.  In recessions, firms are pressed to control
costs to maintain liquidity; thus, R&D
programs, which may have limited ability to
increase short-term cash flow, receive close
scrutiny.
 However, if a firm cuts its R&D spending in
recessions, it risks losing its long-term
technological advantage.

11.  Hyatt Corp
 Burger King: 1953
 IHOP Corp
 LexisNexis is a research hub for the
law, media
 FedEx Corp. began operations on April
17, 1973
 Microsoft Corp. -1975
 General Motors: 1908

12.  Wikipedia Foundation Inc. was born during
the recent post-9/11 recession. Established
in January 2001, the online encyclopedia had
more than 100,000 entries by 2003
 GE (General Electric Co.) was established in
1876 by famed American inventor Thomas
Edison
 HP (Hewlett-Packard Development Company
LP) was inauspiciously born in a Palo Alto
garage at the end of the Great Depression