Economic issues Flashcards
What is growth?
Growth is when GDP is raising and unemployment is falling
What is boom?
boom is caused by too much spending and prices start to rise quickly
What is recession
is caused by too little spending and GDP starts falling
What is slump
when unemployment levels are very high and prices may fall
Change in employment levels effects?
Affecting the ability of the business to recruit new employees
Rising inflation will lead to business costs increase so prices of products will increase and sales of the business will fall
Low inflation?
Inflation is when the average prices increase over a period of time
prices of goods in the country will be higher than other countries
businesses will unlikely want to expand in the near future
Unemployment?
is when people want to work but difficult to find a job
Unemployment effects?
when unemployed people can’t produce goods or services so the output of the country will decrease
Government paying unemployed benefits to people without jobs which cost great amount of money
GDP/ gross domestic product?
is the value of products and services produced in a country in one year
Effects of low GDP
as output decreases, fewer workers are needed so unemployment will occur
number of goods and services the population can afford will decrease
business owners will not expand their businesses as people have less money to spend on their products
