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economic indicators (inflation (calculation of inflation = difference in…

- - - - 3 effects
        
        inflation tends to stop people for saving money
        
        Irish made goods and services will cost more
        
        workers may demand wage increase
- - - - government overspending
    - - reduced consumer demand
      - services are likely to be cut
      - tax increase
- - - - repayments on any existing loans will fall
      - increased investment will help reduce unemployment
      - access to cheaper finance will result in more borrowing and more spending
- - - - economic growth is likely to increase when taxation and interest rates are low and investent and employment levels are high
    - - multiplier effect - demand increase
      - strong economic growth and inflation
      - increased employment
    - - economic boom describes a continues period of economic growth
      - a recession represents a general slowdown in the level of economic activity