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Economic Indicators, Economic Growth - Coggle Diagram

- - - - Higher levels of demand for goods and services
      - Sales rise and businesses may expand
      - More PAYE, Corporation and other taxes
      - Government finances under pressure
      - More spent on unemployment benefits
      - Less PAYE collected
      - Less expenditure on unemployment benefits
      - Sales decline and businesses struggle
    - - Fewer full time jobs
      - Wages tend to fall
      - Harder to find employment
      - Taxes may rise
      - Some people lose their jobs
      - Easier for people to find jobs
- - - - Loans are more expensive to repay, discouraging borrowing
      - For those repaying loans, their disposable income falls
      - People with savings in banks can earn higher rates of interest
      - Loans become cheaper and more people are tempted to borrow money
      - People with savings in banks earn lower rates of interest
    - - Less borrowing decreases spending and economic activity, which can cause higher unemployment
      - Reduced economic activity reduces the amount of tax for government
      - Increased borrowing boosts spending. Businesses may borrow and expand. Employment grows.
      - Increased economic activity increases the amount of tax for government.