BS3- Extenal Influences- Steeple (economic) Flashcards
State what gdp stands for
Gross domestic product
What is meant by economic growth
An increase in the volume of goods and services (gdp) produced each year.
Identify three ways that the government could facilitate economic growth.
They can encourage business start ups
Can give grants and funding
Can remove some costs and fees to allow for cheaper costs
What is meant by inflation
President general tendency of price in the economy to rise.
Inflation dropped form 4% to 2.5% what does that mean?
In means prices are still going up and inflating but just at a slower rate.
Outline how inflation is calculated.
How much the basket of goods has gone up
Explain how a low inflation encourages multinational investments in the uk.
As bunnies feel as though it will be safer and there investment won’t lose value
Identify two business impacts of high inflation.
Makes planning and investment decisions harder
Prices will rise
Explained the difference between imports and exports
An import is the purchase of goods from abroad where as a export is the sales of goods to other countries by uk business
State how a uk business will be affected by the £ strengthening
It will mean that if they importing stock form overseas then it will be cheaper
Outline one factor that could cause a fall in the uk exchange rate
An excess demand for a foreign currency.
