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Ripple Effect: Long-Term Consequences 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 …show more content…

The supply can depend on how profitable a product is and the availability of raw materials and labour. Businesses usually supply more at higher prices and supply less at lower prices. Demand is how much a product or service is wanted and what price the customers are prepared to pay for it. Demand falls as prices rice and it rises when prices fall. There are several factors that influence the demand for goods or services. One factor is the affordability of this product or service as the demand will rise if it is affordable. Another factor influencing the demand for a product or service is the level of income of the population. For example, if the level of income decreases then people will have less money to spend and may not be able to afford a specific product or

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