Economic Issues & Government Policy 6.1

This includes:

• 6.1.1 Business cycle
• main stages of the business cycle: growth, boom, recession, slump
• how each stage of the business cycle may affect a business
• effects of changes in the levels of employment, inflation and economic growth on a business
  6.1.2 Effects of government policy
• effects of changes in taxes on business profit
• effects of changes in taxes on people’s income
• effects of changes in government spending
• effects of changes in interest rates
• how businesses may respond to changes in taxes and interest rates

Minimum Time = 1 hour