Sample Thesis Paper
According to the financial dictionaries recession mean a drastic slowdown of the economy. History tells us that recession is caused by the combination of domestic and overseas factors but domestic problems are more important. As discussed before recession does not mean a slowdown in any particular sector but it effects almost every sector of the economy with the likes of banking, information technology, automobile, service sector, insurance companies, tourism, manufacturing firms, etc. As a result of this most of the organizations reduced their workforce and increased their working hours in order to improve their productivity which is affected by the loss of workforce (Garg 2009).
The Keynes theory of recession was put into practice by many of the economist and presented their own view regarding the dynamics of recession. According to these economists recession results when there are economic imbalances between the investments and consumption. The rational provided to support this idea is that entrepreneur or investors plan their investments in the shape of plants, equipments, inventories etc. All these investments are based upon their final sales and the profit that would be generated by these sales. In a state of recession when people are trying to save rather than consume the demand would automatically falls which in other words means investment would also decrease and would end up in recession.