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Keywords

Recession

Abstract

In recent years, the Indian Economy experienced a pronounced slow down in economic activity. In many ways, the slow down looked like a typical recession driven by a fall in aggregate supply. Seven notable shocks explain this event. They are ● Increase in excess demand ● Increase Money supply ● Fall in the real GDP ● Fall in the composition of agriculture to GDP ● Increase in unemployment rate ● Lower capital inflow ● Unfavorable BoT The responsiveness of fiscal and monetary policy quickly to this events and their impact in rectifying the problems is analyzed in this paper.



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