Business and the Economy (AQA A-Level Business): Flashcards

Total market value of all goods/services a nation produces

Consumer spend + invest + govt spend + exports - imports

Rate of increase in GDP (as a percentage)

Reduction in value as machinery/equipment wears out

High GDP, max capacity, shortages, wages rise

Incomes decline, demand down, confidence reduced

GDP falls low, redundancies, high unemployment

Production increases, employment rises

Luxury holidays - demand responds strongly to income

Staple foods - demand stable regardless of income