How Inflation Affected Ford Motor During the 2007-2009 Recession Essay

How Inflation Affected Ford Motor During the 2007-2009 Recession - Essay ExampleThe damans of the machinery from FORD MOTOR decreases and hence the company cannot sustain a monumental number of workers. The table below shows how the recession affected the employment in FORD MOTOR and other companies in America.As a result of pretension and reduced purchasing power, the entire income raised by households is spent on necessities. As such, there is little disposable income to invest in shares. This is seen when the number of corking shares of the FORD MOTOR gradually increased as a result of decreased demand during the recession as shown in the table belowWhen reliable income falls below potential income due to a recession, FORD MOTOR laid-off workers, so the unemployment rate goes up and hence households earn less income. The cyclic unemployment rate increases during recessions as FORD MOTOR could not raise sufficient revenue to sustain a large number of workers.