Gross Domestic Product and Economic Growth Power Point Notes
Gross Domestic Product and Economic Growth Power Point Notes
Gross Domestic Product and Economic Growth Power Point Notes
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What Keeps a Business Going<br />
• Business Investments – when economy is exp<strong>and</strong>ing, business<br />
expect sales <strong>and</strong> profits to keep rising, therefore businesses<br />
invest heavily; however sometimes too much expansion<br />
• Interest Rates <strong>and</strong> Credit – credit for big purchases, cars <strong>and</strong><br />
homes, the cost is the interest rate financial institutions charge<br />
• Consumer Expectations – consumer spending is determined by<br />
consumer expectations. If consumers expect economy to<br />
contract, they reduce spending <strong>and</strong> vice a versa<br />
• External Shocks – disruptions in oil, wars, droughts <strong>and</strong><br />
hurricanes
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