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UNIT 1 - The Business Environment - Controlled Assessment 2
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- PEARSON (PEARSON)
UNIT 1 - The Business Environment - Controlled Assessment 2
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The GDP during a boom will be higher because it has increased the income for a person and the demand has increased as well as the productivity,this means that the customers are going to be likely to buy more goods from Greggs that are going to be expensive and luxury. This means that
Greggs is going to have a higher demand. This means that Greggs is going to be likely to invest and expand more. Greggs will be able to open more
branches around the country. The Gross Domestic Product GDP is the all monetary value added of the country, the GDP is a way to estimate the size
of the economy.
6. For your selected organisation, compare how a recession impacts business activities and the effects of this. Answer the series of questions below.
A. In detail, describe a ‘recession’ and how this can cause a ripple effect.
When recession takes place, this means that the economic activities are going to decrease, this means that people will spend less, and they are
going to save more. There is going to be a low GDP, this means overall the employees of the country are going to get less salaries, so there will be
less disposable income. The people are going to be less affordable to the luxury and expensive items, because of the inflation rate at boom and this
means because the customers are going to have less disposable income they are going to buy less. The country will have less money in the economy
as a nation. Because the customers are going to buy less the producers are going to supply less, and they are going to decrease the wages of the
employees, more people lose work this means that income is going to fall.
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