How does business confidence affect the economic cycle? And why?

If a business has low levels of confidence in the economy there will be lower levels of investment and so lower economic growth. This will likely result in economic recession where the economy contracts for two consecutive quarters.

Related Economics A Level answers

All answers ▸

What is the Current Account


Explain how an increase in interest rates may affect aggregate demand in an economy


What is cost push inflation?


Explain what you understand by the Lorenz Curve and Gini Coefficient.


We're here to help

contact us iconContact usWhatsapp logoMessage us on Whatsapptelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

© MyTutorWeb Ltd 2013–2025

Terms & Conditions|Privacy Policy
Cookie Preferences