Pick on topic from my uploaded resources Assignment

Pick on topic from my uploaded resources - Assignment Example Economists determine recession with the help of some conventional Macroeconomic indicators like Investment Spending, employment, business profits, capacity utilization, household income and inflation. If the general level of all these macroeconomic indicators is falling, then the economy is most likely to encounter recession. It is pertinent to mention here that as the level of these indicators fall, the level of unemployment and bankruptcies rise on the other hand. The two most important factors that have significant importance on levels of recession are Unemployment and Inflation. In the time of 1930s, when our world encountered Great Depression, most economies of the modern world like Germany were facing hyperinflation. Inflation exceeding the boundaries of Galloping Inflation can make the economy go down thousand times faster .Moreover, inflation accompanying unemployment causes the economy to collapse completely. Recession can be controlled by implementing different policies and by triggering different factors. Countries usually try to overcome recession by announcing sound and stringent Fiscal and Monetary policies. Interest Rates are raised and unemployment is eradicated with the help of different schemes and policies. We know that the global oil market is a complete oligopoly being run by a few powerful oil exporting countries and consortiums. The oligopoly of oil Market is very strong because of the fact that the International demand for oil barrels is relatively inelastic. Due to this reason, leading oil exporting countries have taken the market completely and are running the market according to their own terms and conditions. This type of competition in the global oil market has made the prices inflexible. With the fact that the prices of many other things are dependent on the rates of oil which is being obtained from the global oil market, therefore, oil being a complementary good controls the pricing