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 ▸Using the data and your knowledge of economics, to what extent do you agree that cuts to direct taxation would benefit growth and living standards in the UK? Justify your answer.
Should the government stop firms from getting too big?
Define the term ‘subsidies’ .
If John’s elasticity of demand for burgers is constantly 0.9, and he buys 4 burgers when the price is £1.50 per burger, how many will he buy when the price is £1.00 per burger