Assignment 3- The impact on the economic environment
An entire network of producers, distributors, and consumers of goods and services in a local, regional, or national community. (http://www.businessdictionary.com/definition/economy.html) Economic growth
A period of time when there’s an increase in goods produced and consumed. The growth is measured by a county’s growth domestic product (GDP). Economic recession
An economic recession is the opposite to an economic growth, in a recession there is a decrease in good produced and consumed. The recession will also be measured in GDP. The ripple effect
A situation in which one thing causes a series of other things to happen (http://www.macmillandictionary.com/dictionary/british/ripple-effect) Inflation
The rate at which the price of goods and services is increasing over time Interest rates
The percentage rate the bank charges for a loan, that is, the cost of borrowing money. A low interest rate is good for someone borrowing money and a high interest rate is good for someone with money in the bank. Fiscal policy
Policies involving changed in government spending and government taxation (BTEC Business Book 1) Monetary policy
Policies relating to money available in the economy, the government are able to change the quantity of money available and the interest rates the banks charge. (BTEC Business Book 1) Supply
The total amount of a product (good or service) available for purchase at any specified price. (http://www.businessdictionary.com/definition/supply.html - ixzz2l8HsFfmp) Demand
Desire for a certain good or service supported by the capacity to purchase it. (http://www.businessdictionary.com/definition/demand.html)
Supply and demand are linked together; when supply is low and demand is high prices go up. When supply is high and demand is low prices go down.
Explain how and why economic factors have influenced your selected business to move...
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