Changes in GDP
- Created by: tanja soulsby
- Created on: 28-03-17 11:41
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- Changes in GDP
- Booms
- Businesses can raise prices
- Increases profitability
- Slows down demand a bit
- Long lasting boom
- Businesses invest in production facilities
- Increase capacity
- Bring out new products to take advantage of increased consumer income
- Businesses invest in production facilities
- Businesses can raise prices
- Recessions
- Businesses may make workers redundant
- Save wage costs
- Increase capacity utilisation
- Local Recession
- Businesses can market goods elsewhere in the country
- National Recession
- Businesses can market products overseas
- If national recession or slump lasts a long time, some businesses relocate abroad
- Businesses may make workers redundant
- Global Upswings
- Provide growth opportunities for everyone :)
- Global Recessions
- Bad for everyone :(
- Booms
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