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external influences
Government and the economy
Businesses cycle
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Cards (8)
Boom
GDP is
high
Production reaches
maximum
capacity
Shortages
Price
increases
Shortages of skilled labour
Wages
rise
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Recession
Incomes
start to go down
Demand
goes down
Business
confidence
is reduced
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Slump
GDP is at a
low
Businesses
close
factories
Redundancies
Unemployment is
high
Businesses become insolvent or go
bankrupt
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Recovery or upswing period
Production
increases
Employment
increases
People have more
money
to spend
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Gross domestic product
(GDP)
A measure of the
value
of all
final
products in a country
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Business cycle
Boom
Recession
(
downswing
)
Slump
Recovery
(
upswing
)
Long-term
trend
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Income
elasticity
of
demand
Affects how much a business is impacted by the
business
cycle
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Income
inelastic
products
Staple
foods
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