IGCSE Business Studies revision notes for chapter 10

Revision notes for chapter 10. Obviously parts highlighted in red is the recession stage of the economic cycle.

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Revision Notes for Chapter 10
Keywords:
1. Economic growth ­ an increase in income, output and expenditure over a
period of time
2. Fiscal policy ­ managing the economy by making changes to taxation
3. Inflation ­ a rise in the general price level
4. Interest ­ the price in borrowed money
5. Monetary policy ­ managing the economy by making changes to interest
rates and the money supply
6. Monopoly ­ where one large business dominates the whole market
7. Unemployment ­ where people are out of work and cannot find a job
How does the government influence business activities?
Consumer protection
Employee protection at work
Environmental protection
Competition policy
Protectionism
Economic and regional policy
Economic growth cycle:
Boom: This is the peak of the cycle. Incomes will be rising, demand will be
rising, unemployment falls as jobs were created, wages will be rising as well.
However, prices may be rising as well.
Recession: This is at the bottom of the cycle. National income falls,
unemployment will rise as jobs were lost, demand starts to fall, business
bankruptcies will rise, and prices fall.

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