business management

Question 1

Economic influence

Answer 1

The level of economic activity is determined primarily by the level of spending by consumers and businesses

Question 2

The economic cycle- characteristics

Answer 2

upswing
boom
downswing
depression

Question 3

The economic cycle- characteristics
(upswing)

Answer 3

increased spending

decreasing unemployment

increasing level of business investment

increasing consumer demand

increased value of assts: rising prices

often growth in housing and construction

increased business profit

change in competition

Question 4

The economic cycle- characteristics
(boom)

Answer 4

high employment
high level of spending
high level of business investment
high level of imports
high level of asset sales: inflationary pressures
increasing interest rates
high business expectations of higher profit
large numbers of new firms entering the market

Question 5

what is the economic cycle?

Answer 5

to the changes in consumer and business spending over a period of time. It influences:

the level of employment and investment in an economy

the profitability of business

the amount of goods and services produced.