10. IMPACT OF RECESSION ON IT
SECTOR
The impact of Recession is
unpredictable. The main effect of
recession is in IT sector and is mainly
related to the job loss and
unemployment
11.
12.
13.
14. How to come out of recession?
Corrective
Steps
Should be
taken to
come out
of
Recession
15. Important Point:
Today, it is a market Economy
Producers; Consumers;
Can produce and Can decide to
sell at their buy or not;
prices
16. Government has 2 plans
Monetary
Fiscal
Policies
Policies
(By RBI)
(By Govt.)
Government influences the RBI manipulates
economy by changing how the available supply of
it (Government) spends money in the country
and collects money
17. Fiscal Government influences the economy by changing
Policies how it (Government) spends and collects money
More money
1] Tax cuts for
available for
businesses or
for individuals
Demand
spending
picks
2] More Individuals get
up;
Spending salary and
by Govt. to spend
Market
create jobs money
can
3] Automatic
recover;
fiscal policy; Some income to
unemployed
Unemployment people to spend
Insurance
18. Monetary Government manipulates the available supply
Policies of money in the country
More money
1] Reduce
available for
reserve
bank
Demand
ratio to give loans
picks
up;
2] Lower the Individuals take
interest rates more loan
Market
can
3] Use its own It becomes an
recover;
reserved income to Govt.
money to buy to inject money
Govt. bonds into the market