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Economic Indicators (Inflation (The increase of the general level of…
Economic Indicators
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GDP- measures value of goods and services produced within a country in a year.- produced by homegrown + foreign owned businesses
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effects -
Households: Decrease in consumer demand for goods and services. Lower standard of living. Workers may emigrate.
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Economy: reduced economic activity. Social problems may increase. emigration of highly qualified or skilled workers.
occurs when there is an increase in the amount of goods and services produced in an economy from one year to the next.
Economic cycle is the term used to describe the way in which the level of economic activity changes over time.
Economic growth occurs when taxation and interest rates are low and investment and employment levels are high,
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impacts of high inflation - 1. Businesses : workers may demand wage increase . Increase business costs and will result in lower profits or higher prices. 2. Households : not be able to buy as many goods and services as did before . Inflation stops them from saving money. 3. Economy : Irish made goods and services will be more expensive . The higher costs of the goods will result in lower profits or higher prices. government spending may increase due to social protection payments
causes - cost of producing goods increases. f imported raw materials increases . Increase in indirect taxes. Demand for goods or services is greater than supply.
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households: Taxes may increase. government spending reduced. businesses: taxes may increase. reduced consumer demand. Economy: services likely to be cut back