Th2.5: Economic Growth - Consumers Flashcards
Why would there be an increase in demand for housing?
people have more money and so are able to afford to buy properties, which will increase house prices
Why are shares likely to increase in value?
businesses are making more money and future prospects are good
What will the rising prices of shares and housing do?
increase wealth and lead to a positive wealth effect
Improved productive efficiency due to better technology could lead to…
lower prices or higher quality goods
Some argue that increased economic growth will lead to…
increased happiness, but this is not necessarily the case
On the other hand, economic growth could lead to … and may lead to…
increased inequalities and so may not have any affect on the average consumer and may lead to inflation, which has negative affects for consumers
