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Chapter 38 (Inflation (Causes (When the cost of producing goods increase,…

- - - - Taxes may increase
    - - Government spending may reduce
    - - Services are likely to be cut back
- - - - Refers to a situation where almost all members of labour are employed
  - - - Decrease in costumer demand for good wages
      - Many Households will have a lower standard of living
      - Some workers may have to move out of the country
    - - It may be harder to attract extra finance
      - There may be a reduction in sales and profits
    - - Reduce economic activity
      - Social problems could increase
      - Emigration of highly qualified or skilled workers leave
- - - - GDP
        
        Goods and services produced by indigenous and foreign owned businesses
      - GNP
        
        Total of the goods and services produced by the country in one year