Oluyomi Ola-David Insights

In every economy, there are a variety of economic agents. These agents fall into five (5) broad classifications: A. Individuals B. Households C. Firms D. Governments E. Institutions Each economic agent makes decisions and engages in a variety of activities in pursuit of a core objective. Individuals are assumed to seek utility maximization while households work to attain a desired living standard. Firms tend to have a range of objectives as they adapt to their dynamic business environment, but it is traditional for for-profit firms to seek to maximise profit. Governments exist to maximise their social welfare functions while institutions are established to entrench justice and peace in all human relationships. Governments retain the priviledge to create and maintain institutions that sustain socio-economic life within  territorial boundaries across the planet. In other to maximise social welfare, governments make decisions and take actions to grow and sustain economic health and wealth

Recession is costly and it happens in all countries and at various points in the global growth trajectory. A recession simply indicates a slowdown in economic activity in a domestic economy or an average slowdown in global economic activity if it is on the global scale. Broadly, a recession is characterized by a contraction in domestic output and all components of the aggregate demand function – consumption, investment, government spending and net export activity. The observable decline in real income, real GDP, industrial production, employment, sales activities across an economy could last more than a few months . It usually begins with a contraction after a peak and ends after an economy reaches a through. When severe and prolonged, recession results in a depression. An economic slowdown characterized by a recession can be triggered by a variety of phenomena. Based on observable cross-country economic experiences over time, there are several indications that a domestic rec