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economic indicators (Inflation (Causes (Cost of importing raw materials…

- - - - Workers may demand wage increases. This will increase business costs and will result in lower profits or higher price
    - - The higher the cost of Irish-made goods will result in cheaper imported goods and services
      - Government spending may increase due to increased social protection payments
      - Irish-made goods and services will be more expensive
    - - Consumers will not be able to buy as many goods and services as they did previously
      - Inflation tends to stop people from saving money
- - - - Economic Boom describes a continuous period of rapid economic growth
      - A Recession represents a general slowdown in the level of economic activity
      - Economic Growth is likely to increase when taxation and interest rates are low and investment and employment rates are high
      - An Economic Depression occurs when a recession is very severe and continuous for a sustained period of time
  - - - Multiplier effect: demand increases
      - Rise in government income
    - - Strong economic growth
    - - Increased employment
      - An improved standard of living
- - - - It may be harder to attract extra finance
      - There may be a reduction in sales and profits
    - - Reduced economic activity
      - Social problems may increase
      - Emigration of highly skilled workers
    - - Many households will have a lower standard of living
      - Workers may have to emigrate
      - Decrease in consumer demand for goods and services
- - - - Expansion and new products development will be easier.
      - Repayments on any existing loans will fall
    - - Increased investment will help reduce unemployment
      - The cost of servicing the national debt will be reduced
    - - Access to cheaper finance will result in more borrowing and more spending
      - Those with existing loans will have more disposable income
- - - - Taxes may increase
      - Reduced consumer demand
    - - Services are likely to be cut back
    - - Taxes may increase
      - Government spending may be redced