Economic Impacts Of Economic Growth

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Economic growth is an increase in a country’s capacity to produce goods and services. This occurs when there is a rising demand and an increase in productive capacity. Economic growth in a nation can have several impacts. For example, it can reduce the amount of poverty which leads to people having a higher quality of life and better living standards. Economic growth will give the country more income which means that the government are able to spend more on healthcare, education and technology. Recession Recession is when a nation’s economy is in decline due to a long-term decrease in the GDP. One impact that a recession can have on a country is that the unemployment percentage will increase. This is because the businesses within the country will have a decrease in income so they can 't afford to carry on employing as many people. Another impact that this can have is that the government spending may be lower, however it will be higher on welfare payments as there will be more unemployment and less income. Ripple Effect The ripple effect is the consequences caused by a decision from a business. These consequences can be positive or negative. For example, when the UK leaves the EU, there will be a ripple effect. Britain do a lot of trading and by many products overseas, but Brexit will make this harder and a lot more expensive which means that businesses such as Tesco that buy many of their products abroad will be paying more for their products. This will lead to them raising
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