Economic activity relates to GDP as economic activity of the population of a country or region is related to the level of spending and production. Faster growth in the economy will cause GDP levels to rise as consumer confidence will rise making people more optimistic and therefore more likely to spend their money on goods, however with fast growth there is a risk of high inflation to occur.
Slow or negative growth (a recession) will cause consumer confidence to decline making people pessimistic, resulting in consumer spending to fall, as people will become unwilling to spend there money because growing unemployment is associated with a recession climate, therefore jobs will become less secure, threatening consumers source of income therefore causing more saving to occur in order for people to have money to live on if their job is lost.
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- Home
- The Economy of China
- The Economy of India
- The Economy of the USA
- The Economy of South Africa
- Internatioanl Business
- Unit 4 Research
- The Rail Industry Case Study
- Evidence A: UK has the 'most expensive train fares in Europe
- Evidence B: High Speed Rail
- Evidence C: Public subsidy for rail users must end
- Evidence D: EU Directives 91/440- Development of the Community's railways
- Evidence E- Labour calls for review of trains contract awarded to Siemens
- Evidence F- Campaign for better Transport warns Government over high speed rail
- Evidence G- Passenger Kilometers traveled in Great Britain 1987 to 2009
- Evidence H- Passenger journeys in Great Britain in 1985-86 to 2008-09
- Evidence I- Commuters face overcrowding
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