Pseudo – recessinalization ( Realization ) Psychological Recession: Does Psychological impact lead to Factual Recession?

- Dr. Dharmesh Shah, Associate Professor, N.R. Institute of Business Management, Ahmedabad, Gujarat, India
- Apoorva Raval, Associate Professor , Kalol Institute of Management, Kalol, Gujarat, India
- Gargi Vyas, Assistant Professor, Kalol Institute of Management, Kalol, Gujarat, India

Abstract:

The purpose of this study was to investigate the effect of psychological recession on factual recession and its influences on economy as whole. There is so many expectations and changing attitude of people, consumer, customer, and producer, supplier regarding market and environment where they are living. The literature has confirmed that psychological impact of recession has impact on turning round factual (Realistic) recession very prompt. The accelerator creates an impact on: declining GNP (a recession) hurts business profits, sales, cash flow, use of capacity and expectations. This in turn discourages fixed savings and investment, worsening a recession by the multiplier effect.

This impact as aggregate multiplier effect (Multiplier is a factor of proportionality that trial how much an endogenous variable changes in response to a change in some exogenous variable.) make scenario of economy worst. Recession is linked to lower levels of optimism. However, their expectations regarding future scenario is making impact that they should not spend today (compromise today’s consumption for future threat because of Recession). Which generate cyclic impact on demand, production, and unemployment and accordance to such aggregate impact would be factual recession.

The basic objective of this paper is to understand the factors where people respond to such environment very pessimistically also how government and regulatory body find the way to overcome with such syndrome. Also find the fact positive impact of leadership to overcome with this pseudo - recessinalization by people of country.

To access full paper, you must register or login

Joomla! Debug Console

Session

Profile Information

Memory Usage

Database Queries