economic change Flashcards
1
Q
def of GDP
A
the value of the a countrys total output of goods and services over a period of time
2
Q
def of recession
A
two successive decreases in quarterly GDP
3
Q
def of inflation
A
percentage increase of general prices
4
Q
What does good gdp mean for the economy
A
people have more disposable income, which decreases demand for normal goods
5
Q
What does a low rate of inflation mean for businesses
A
its good because there costs are only rising slowly and goods are not becoming too expensive for consumers
6
Q
why are low interest rates good for businesses
A
cheaper to borrow
cheaper for consumers to buy on credit
people save less
therefore higher levels of demand
