Understanding recession

Well its quite common these days to cut costs but i really dont think the Macro Economy level impact of this can be ever positive .Cutting costs by itself would reduce the short term loses in a given recessionary condition, But it will actually prolong the over all recessionary cycle, as cutting costs reduces agg demand of the economy.. When there is unemployment then consumer demand falls. Even if you have reduced short term lose, you will still incur some lose over a longer period of time, and hence negating the effect of the cost cutting. Instead if a price cut is brought into place then you will increase your short term lose, but reduce the recessionary period without hampering your production pattern, There would be no stock piling in warehouses and also the company can retain its employees and expertise and can attain super normal profits when market recovers.The recession would really wont last long as given the fact there would be no un employment and hence no reduction n the aggregate demand.Its better going production optimizing during recession than trying to go for profit maximization mode of production. One of the major reason India at a negative inflation rate had a reduced recessionary cycle it was a mare slow down