buisness chp32

• gross national product

  total value of goods and services produced by irish companies or individuals both in ireland and abroad
• calculating economic growth

  change un value between year 1 year 2 - value of production year 1 multiply 100
• benefits of positive economic growth to your area

  • new buisness start ups will reduce unemployment
  • income rises
  • the goverment has more money to spend on health and education
  • young people will not feel the need to emigrate
• economies change over time depending on both internal and external factors . these changes are reffered to as the economic cycle
• achieving positive economic growth

  • inflation is kept low so people are encouraged to buy more goods and services
  • interest rates are low so that people will borrow money to start buisnesses
  • wages increase and other costs are kept low so that buisnesses can grow
  • the goverment budgets well and and reduces the amount they have to borrow
• economic boom descibes a period of substantial economic growth in an economy over a period of time

  during a boom period ;

  wage levels rise

  production increases

  prices increase
• a recession describes a period of economioc , activity has dropped considerably over a number of months

  during a recession ;

  • there is slowdown in production
  • employment levels fall
  • demand falls as people see a decline in their income
  • goverment income falls
  • some firms experience difficulty and close
  • there is low infaltion as prices remain the samne or fall
• slump describes a recession that lasts for a considerably time and results in a long term reduction in the level of production of goods and services in a country

  signs of slump are ;

  increasing unemployment

  fall in demand for good and services

  reduced consumer spending

  inflation remaims low
• an economy usually goes in recovery after a slump

  it is marked by ;

  • an increase in consumer spending
  • increased production
  • falling unemployment
  • infaltion and interest rates stop falling but remains low
• postive impacts of ecnomic growth

  • econonomic growth lead to increased employment
  • goverment income increases due to increased employemnt
  • foreign inward investemt increases
  • there is an increase in entrepuener activity
  • fewer irish people and families are living in poverty
• negative imapcts of economic growth

  • result in widening of the gap between rich and poor
  • output and emplyment in agriculture has has fallen
  • increased emphasis on work and meeting targets may result in less family
  • an ageing popultion can put a strain on the ecnomy as more and more people rely on state pension
• positive impacts of economic growth on the enviroment

  • increased finance for the goverment
  • as the revenue of companies increase they will have more money to spend on pollution control systems
  • households will have more income availavle to sopend on inulation
  • the goverment will have more money available to give grants to buisness
• negative impacts of economic growth on the enviroment

  • increase in use of natural resources
  • can lead to pollution from both factories and increased traffic congestin
  • increased production by increasing the risk of extreme weather events
  • increased waste
• carbon footprint is a meaurement of the amount of carbon dioxide released into the atmosphereas a result of the activities of a particular individual country or organisation