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The Economy - Coggle Diagram
The Economy
What affects the economy?
Tax Rates
Law
Policies
Wages
Governmental Activities
What is the economy
How well the country is doing as a whole
Definition
The system of trade and industry by which the wealth of a country is made and used.
The economy cycle
first it grows
then it reaches its maximum and has a boom
then it goes down into a recession
and down to a slump which is the lowest point
and then it grows again
the economy might be in a slump if there are:
high levels of unemployment
incomes on average are lower
if people earn less, they spend less, local businesses make less profit
they buy fewer products and cut down on staff
the government intervenes
1 more item...
unemployment levels are low incomes are high confidence in the economy
Overal the economy is growing
They try to minimise recession and slump
Higher periods of growth and boom
How businesses react to changes in employment?
Weak Economy & Unemployment Increase
Lower wages.
Employees have less choice on where to work
Growing Economy & High Employment
Increase pay to encourage employees away from current jobs.
Higher incomes
More sales for a business
Increase costs
