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Business Studies IGCSEPDF 176
212 pagesrevision 46931
PDF 176
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Stage
1. Growth
(Expansion)
Description
The cycle generally includes four main stages —
— followed by a Recovery period before the process repeats.
Economic
Indicators
This is the period where
economic activity
increases. Output, income,
and employment levels
rise as businesses expand falls as firms hire
- GDP begins to
rise steadily.
- Unemployment
production to meet
growing demand.
more workers.
- Consumer and
business
confidence
improves.
- Investments in
new projects and
technologies
increase.
- Living standards
begin to improve.
Effect on
Businesses and
Society
- Businesses earn
higher revenues and
profits.
- Firms expand into
new markets and
may increase prices
slightly.
- More startups
emerge due to
positive business
conditions.
- Governments
collect more taxes
from higher income
and sales levels.
- Demand for luxury
goods and services
increases.
Growth,Boom, Recession, and Slump