A(A) decline(N) in(Prep) two(N) consecutive(Adj) quarters(N) or(Conj) more of(P) Gross Domestic Product(N) is(V) commonly(Adv) considered(V) as(Prep) "Recession"(N) in(Prep) economic terms(N) (Recession, 2010). "Gross Domestic Product (GDP)(N) is(V) the(A) market value(N) of(Prep) all(Adv) final(Adj) goods(N) and(Conj) services(N) produced(V) within(Prep) a(A) country(N) in(PREP) a(A) given(V) period(N) of(Prep) time(N)." (Gans, 2008, p. 543). In general(Adv), GDP(N) is(V) the(A) indicator(N) of(Prep) an(A) economy's(D) position(N). "Global Recession"(N) can be considered(V) as(Prep) period(N) which(P) reflected(V) a(A) decline(N) in(Prep) the(A) world economy(N). According to(Prep) many(D) economists(N) around(Adv) the(A) globe(N), most of(P) the(A) countries(N) including(Prep) New Zealand(N) have(V) entered(V) recession(N) since(Adv) late(Adj) 2008. In(Prep) the(A) following(Adj) part(N) of(Prep) the(A) writing(N), a(A) wider(Adj) aspect(N) of(Prep) the(A) effects(N) of(Prep) recession(N) on(Prep) the(A) Air New Zealand Limited(N), which(P) is(V) a(A) New Zealand company(N) and(Conj) on(Prep) society(N) will be reflected(V). The(A) effects(N) on(Prep) the(A) Air New Zealand Limited(N) will be(V) mostly(Adv) discussed(V) from(Prep) an(A) economist's point of view(N). Air New Zealand Limited(N) is(V) a(A) company(N) listed(V) on(Prep) the(A) New Zealand Stock Exchange(N) and(Conj) New Zealand's national carrier(N). It(P) can be(V) considered(V) as(Prep) a(A) significant(Adj) contributor(N) towards(Prep) New Zealand's economy(N).
The(A) first(Adj) effect(N) that(D) Air New Zealand Limited(N) faced(V) during(Prep) global financial crisis(N) was taking(V) a(A) profit(N) hit(V) in(Prep) the(A) year(N) 2009. The(A) balance sheet(N) reflected(V) a(A) fall(N) of(Prep) 19% in(Prep) the(A) profit(N) and(Conj) a(A) fall(V) of(Prep) 90% in(Prep) the(A) bottom line(N) profits(N) to(Prep) 21 million(N), compared(V) to(Prep) the(A) year 2008(N) (TVNZ, 2009). It(P) was(V) also(Adv) noticed(V) by(Prep) the(A) senior(Adj) officials(N) of(Prep) Air New Zealand(N) that(D) the(A) number(N) of(Prep) passengers(N) flying were(V) also(Adv) decreased(V) significantly(Adv), which(P) reduced(V) revenue(N) of(Prep) the(A) company(N). The(A) main(Adj) reason(N) for(Prep) it(P) was(V) the(A) reduction(N) in(Prep) income(N) of(Prep) the(A) average(Adj) household(N). In(Prep) the(A) period(N) of(Prep) recession(N), most of(P) the(A) companies(N) are(V) less(Adj) productive(Adj) than(Conj) they(P) would be(V) during(Prep) further(Adv) decreasing(V) income(N) of(Prep) workers(N). The number of(P) passengers(N) flying(V) with(Prep) Air New Zealand(N) reduced(V) as a result(Conj) of(Prep) change(N) in(Prep) the(A) income elasticity(N) of(Prep) demand(N). "Economists(N) use(V) the(A) income elasticity(N) of(Prep) demand(N) to measure(V) how(Adv) the(A) quantity(N) demanded(V) changes(V) as(Conj) consumer income(N) changes(V)." (Gans, 2008, p. 95). Goods(N) and(Conj) services(N) that(V) are(V) luxuries(N) have(V) elastic(Adj) demand(N) as(Conj) they(P) could be(V) substituted(V) by(Prep) some(D) other(Adj) goods(N) but(Conj) necessities(N) have(V) inelastic(Adj) demand(N) as(Conj) they(P) are(V) basic(Adj) requirements(N) and(Conj) cannot be(V) substituted(V). In(Prep) the(A) above(Prep) issue(N) related(V) to(Prep) Air New Zealand(N), the(A) passengers(N) who(P) travel(V) for(Prep) leisure(N) reduced(V) significantly(Adv) as(Conj) they(P) could(V) substitute(V) the(A) money(N) to be(V) paid(V) for(Prep) leisure(N) for(Prep) buying(V) something(Adj) more important(Adj) than(Conj) it(P). On the other hand(Conj), where(Adv) passengers(N) fly(V) for(Prep) business(N) purposes(N) don't have(V) a(A) choice(N) and(Conj) thus(Adv) the number of(P) passengers(N) flying(V) for(Prep) business(N) doesn't(V) reduce(V) significantly(Adv). Air New Zealand(N) Chief Rob Fyfe(N) said(V) to(Adv) TVNZ(N) that(Conj) on(Prep) a(A) Boeing 737(N), the(A) difference(N) between(Prep) making(V) a(A) profit(N) and(Conj) making(V) a(A) loss(N) is(V) five(Adj) passengers(N) and(Conj) they(P) have(V) got(V) to work(V) really(Adv) hard(V) towards(Prep) making(V) a(A) profit(N) (TVNZ, 2009). It(P) can(V) be(V) recognised(V) from(Prep) Rob Fyfe's statement(N) that(Conj) a(A) small(Adj) fluctuation(N) in(Prep) the number of(P) passengers(N) can(V) decide(V) the(A) outcome(N).
The(A) profits(N) for(Prep) Air New Zealand(N) were(V) reduced(V) as result(Conj) of(Prep) downturn(N) of(Prep) New Zealand's(N) economy(N) which(P) was(V) a part of(P) global(Adj) economic(Adj) crisis(N) by(Prep) then(Conj). Companies(N) try(V) to cut down(V) costs(N) during(Prep) the period of(P) economic(Adj) distress(N) to reduce(V) the(A) impact(N) of(Prep) the(A) loss(N). As(Conj) most of(P) the(A) companies(N) did(V) during(Prep) that(P) particular(Adj) period(N), Air New Zealand(N) decided(V) to cut down(V) 200(Adj) full time(Adj) jobs(N) which(P) will save(V) $20 million(Adj) a year(Adj) for(Prep) the(A) company(N) (NZ Herald, 2008). Air New Zealand Chief Rob Fyfe (N) also(Adv) said(V) that(Conj) the number(D) of(Prep) inbound(Adj) tourists(N) and(Conj) inbound(Adj) visitors(N) has decreased(V) significantly(Adv) and(Conj) planes(N) were not flying(V) that(Conj) frequently(Adv) (NZ Herald, 2008). The(A) decrease(N) in(Prep) number of(P) inbound(Adj) visitors(N) reflects(V) the(A) reason(N) for(Prep) the(A) loss(N) of(Prep) Air New Zealand Limited(N) and(Conj) also(Adv) depicts(V) the(A) worldwide(Adj) effect(N) of(Prep) the(A) global(N) economic(Adj) crisis(N). The(A) amount(N) that(Prep) a(A) company(N) receives(V) for(Prep) the(A) sale(N) of(Prep) its(A) output(N) is called(V) its(A) total(Adj) revenue(N) and(Conj) the(A) amount(N) that(Prep) a(A) company(N) pays(V) to(V) buy(V) its(P) inputs(N) in(Prep) the(A) production(N) of(Prep) outputs(N) is called(V) its(A) total(Adj) cost(V). Profit(N) is(V) a(A) company's(N) total(Adj) revenue(N) minus(V) its(A) total(Adj) cost(N) (Gans, 2008, p. 271). Hence(Conj), cutting(V) down(Prep) jobs(N) was(V) a(A) wise(Adj) decision(N) by(Prep) Air New Zealand(N) as(Conj) a(A) business(N) to(V) sustain(V) its(A) economic(Adj) position(N) as(Conj) it(P) will(V) reduce(V) the(A) cost(N) of(Prep) doing(V) business(N) which(P) will(V) eventually(Adv) help(V) in(Prep) increasing(V) profit(N) for(Prep) the(A) company(N).
The(A) cut down(N) of(Prep) jobs(N) contribute(V) towards(Prep) increasing(V) unemployment(N). "A(A) person(N) is unemployed(Adj) if(Conj) he(P) or(Conj) she(P) is(V) on(Prep) temporary(Adj) layoff(N), is looking(V) for(Prep) a(A) job(N), or(Conj) is waiting(V) to(Prep) start(V) a(A) new(Adj) job(N)"(Gans, 2008, p. 637). During(Prep) recession(N), likewise(Adv) Air New Zealand(N) other(Adj) big(Adj) companies(N) which(P) are(V) an(A) important(Adj) part(N) of(Prep) New Zealand's(N) economy(N) and(Conj) are suffering(V) through(Prep) the(A) effects(N) of(Prep) recession(N) also(Adv) cut down(V) jobs(N) and(Conj) eventually(Adv) result(V) in(Prep) increasing(V) the(A) unemployment rate(N) of(Prep) the(A) country(N). Some(D) companies(N) also(Adv) try(V) to move(V) their(P) operations(N) from(Prep) their(P) home(N) country(N) to(Prep) a(A) foreign(Adj) country(N) where(P) the(A) cost(N) of(Prep) operation(N) is(V) lower(Adj). A(A) substantial(Adj) displacement(N) of(Prep) employment(N) in(Prep) some(D) countries(N) has produced(V) poverty(N), refugees(N) to(Prep) societies(N) in(Prep) the(A) north(Adj) and(Conj) local(Adj) conflicts(N) (Synott, 2009, p. 215). Rise(V) in(Prep) unemployment(N) leads(V) to(Prep) a(A) decrease(N) in(Prep) family incomes(N) and(Conj) results(V) in(Prep) low(Adj) standards(N) of(Prep) living(N). Research(N) has suggested(V) that(D) children(N) in(Prep) families(N) where(Conj) parents(N) are unemployed(V) have(V) higher(Adj) rates(N) of(Prep) psychosomatic symptoms(N), chronic diseases(N) and(Conj) low(Adj) well-being(N) and(Conj) further(Adj) research(N) suggested(V) that(P) these(D) negative(Adj) effects(N) may(Adv) be mediated(V) by(Prep) means(V) of(Prep) the(A) force(N) that(D) unemployment(N) has(V) on(Prep) parents(N) mental(Adj) health(N), with(Conj) the(A) mental(N) sorrow(Adj) associated(V) with(Conj) decreased(V) social(N) position(N), interruption(V) of(Prep) roles(N), loss(Adj) of(Prep) self-respect(N) and(Conj) increased(V) financial(N) damage(N), all(D) impacting(V) negatively(Adv) on(Prep) parent's(N) emotional(Adj) state(N) (Unemployment Rates, 2009).(N)
"One(D) of(Prep) the(A) Ten(D) Lessons(N) from(Conj) Economics(N) is(V) that(D) the(A) society(N) faces(V) a(A) short-run(Adj) trade-off(V) between(Conj) inflation(N) and(Conj) unemployment(N)." (Gans, 2008, p. 818). It(D) means(V) that(D) policymakers(N) choose(V) to(Prep) increase(V) the(A) supply(V) of(Prep) money(N) in(Prep) the(A) market(N) which(D) increases(V) the(A) quantity(N) of(Prep) goods(N) and(Conj) services(N) demanded(V) at(Prep) any(A) price(N) and(Conj) thus(Conj) decrease(V) unemployment(N) as(P) more(Adv) workers(N) are needed(V) for(Prep) producing(V) the(A) increased(V) demanded(V) quantity(N) for short(Adv) period(N) of(Prep) time(N). In(Prep) the(A) above(D) process(N), inflation(N) is increased(V) due to an(A) increase(V) in(Prep) money(N) supply(V) reflecting(V) a(A) price(N) hike(V) for goods(N) and(Conj) services(N). An(A) average(Adj) household(N) with(Conj) the(A) same(Adj) income(N) as before inflation(N) has(V) to(Prep) spend(V) more(Adj) money(N) buying(V) basic(N) goods(N) and(Conj) services(N). It(D) also(Adv) means(V) that(D) the(A) most(Adj) affected(V) stratum(N) of(Prep) society(N) is(V) the(A) middle(N) class(N) as(Conj) majority(N) of(Prep) their(D) savings(N) is(V) in(Prep) the(A) form(N) of(Prep) cash(N). On(Prep) contrary(N), the(A) higher(Adj) class(N) are(V) not affected(V) on(Prep) a(A) larger(Adj) scale(N) as(Conj) their(D) savings(N) are(V) mostly(Adj) in(Prep) the(A) form(N) of property(N) and(Conj) the(A) lower(Adj) class(N) who(P) strive(V) to make(V) a(A) saving(N) and(Conj) improve(V) their(D) economic(N) condition(N) are(V) left(V) with(Conj) no(A) scope(N) for(Prep) it(D) at(Prep) all(D).
It(P) was observed(V) in(Prep) New Zealand(N) that(D) crime(N) rate(N) was raised(V) as(Conj) unemployment(N) was rising(V). "Crime(N) is(V) a(A) symptom(N) of(Prep) a(A) society(N) in(Prep) distress(N); the(A) root(N) cause(N) is(V) unemployment(N) – causing(V) poverty(N), disconnection(N) from(Prep) society(N), and(Conj) a(A) lack(Adj) of(Conj positive(Adj) ways(N) to(Prep) spend(V) one's(P) time(N)"(Marty, 2009). In(Prep) worst(Adj) cases(N) it(P) may(V) also(Prep) lead(V) to(Prep) an(A) urge(N) of(Prep) committing(V) suicide(N) (NZ Ahead, 2010). In(Prep) other parts(N) of(Prep) the(A) world(N) unemployment(N) can(V) also(Adv) be(V) related(V) with(Prep) other(Adj) severe(D) issues(N) like(Conj) youngsters(N) easily(Adv) getting(V) influenced(V) by(Prep) anti-social(N) groups(V) spreading(V) terrorism(N). Poverty(N) led(V) by(Prep) unemployment(N) deprives(V) the(A) option(N) of(Prep) education(N) from(Prep) the(A) masses(N) of(P) Islamic(N) countries(N) which(P) mostly(Adv) get(V) influenced(V) towards(V) terrorist(N) activities(N) U.S. Secretary of State Hillary Clinton(N) had stated(V) that(D) terrorism(N) cannot be(V) stopped(V) or(Conj) ideologies(N) of violent(N) extremism(N) cannot be(V) overpowered(Adj) when(V) hundreds of(P) millions(N) ever(Prep) to(V) catch up(V) with(Prep) the developed(Adj) world(N) around(Prep) them(P) (The Nation, 2010). Increasing(V) terrorist activities(N) results(V) in(Prep) a(A) threat(N) to(Conj) global security(N) and(Conj) leaves(V) a sense of(Prep) fear(Adj) in(Prep) society(N).
Looking(V) at(Prep) the(A) above(Prep) issues(N) and(Conj) discussion(N), it can be(V) concluded(V) that(D) the(A) impact(N) of(Prep) recession(N) can be(V) noticed(V) on(Prep) all levels(N) i.e. global level(N), national level(N) and(Conj) community level(N). Everyone(P) from(Prep) large(Adj) scale(N) businesses(N) to(Prep) a(A) normal(Adj) wage(N) earning(V) individual(N) feels(V) the(A) strain(N) of(Prep) Global Recession(N). Businesses(N) are observed(V) to(Prep) be hit(V) economically(Adv) by(Prep) the(A) recession(N) and(Conj) individuals(N) are hit(V) both(Conj) economically(Adv) and(Conj) socially(Adv). In the course of(Adv) reducing(V) the(A) damage(N) of recession(N), businesses(N) tend to(V) take(V) some(D) actions(N) which(D) affect(V) common(N) man's life(N) vigorously(Adv) including(V) in(Prep) some(D) serious(Adj) dimensions(N) which(D) might(Conj) prevent(V) them(P) obeying(V) their(P) social responsibility(N) and(Conj) even(Prep) supporting(V) anti-social elements(N) that(Prep) disturb(V) the existing(V) peace(N) in the community(N). It(P) can be(V) drawn(V) from the above(Conj) conditions(N) that all(Prep) the economies(N) around(Conj) the globe(N) get affected(V) in a certain way(V) during(Prep) the(A) recession(N) and(Conj) lead(V) towards(Prep) global crisis(N). In order to(Conj) minimize(V) the(A) impact(N) of the(V) global recession(N), countries(N) should initiate(V) a co-operative(N) movement(N). Countries(N) with(Prep) a stable(Adj) economy(N) should help(V) the economically(Adv) and(Conj) socially(Adv) backward(Adj) countries(N) during(Prep) the period(N) of economic(N) downturn(Adj).
**Remark: Nouns (N) Conjunction (Conj)
Pronouns (P) Preposition (Prep)
Article (A) Adjective (Adj)
Verb (V) Determiner (D)
Adverb (Adv)
Reference:
UKEssays. (2015). Causes And Effects Of The Recession Economics Essay. [online] Available at: http://www.ukessays.com/essays/economics/causes-and-effects-of-the-recession-economics-essay.php [Accessed 10 Mar. 2016].
Reference:
UKEssays. (2015). Causes And Effects Of The Recession Economics Essay. [online] Available at: http://www.ukessays.com/essays/economics/causes-and-effects-of-the-recession-economics-essay.php [Accessed 10 Mar. 2016].
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