Unit 38 Business & Economic Environment by Jo Ward https://padlet.com/joanneward/4yptv9sd6l2t Inflation & Deflation en-us 2018-03-20 11:11:48 UTC 2024-10-08 04:56:56 UTC hello@padlet.com Question 1 joanneward https://padlet.com/joanneward/4yptv9sd6l2t/wish/243932324 What is the business/economic cycle and GDP?]]> 2018-03-20 11:19:36 UTC https://padlet.com/joanneward/4yptv9sd6l2t/wish/243932324 Question 2 joanneward https://padlet.com/joanneward/4yptv9sd6l2t/wish/243932900 List the different ways in which low interest and high interest rates can affect the economy.]]> 2018-03-20 11:21:35 UTC https://padlet.com/joanneward/4yptv9sd6l2t/wish/243932900 Question 3. joanneward https://padlet.com/joanneward/4yptv9sd6l2t/wish/243933182 What is inflation and how is it measured?]]> 2018-03-20 11:22:31 UTC https://padlet.com/joanneward/4yptv9sd6l2t/wish/243933182 Question 4. joanneward https://padlet.com/joanneward/4yptv9sd6l2t/wish/243934961 What are the effects of Inflation?]]> 2018-03-20 11:28:02 UTC https://padlet.com/joanneward/4yptv9sd6l2t/wish/243934961 Question 5. joanneward https://padlet.com/joanneward/4yptv9sd6l2t/wish/243935684 What are the effects of deflation?]]> 2018-03-20 11:30:29 UTC https://padlet.com/joanneward/4yptv9sd6l2t/wish/243935684 Question 1 niamhnoonan12 https://padlet.com/joanneward/4yptv9sd6l2t/wish/306333987 The Business Cycle is a cycle or series of cycles of the economic expansion and contraction.

GDP is the total value of goods produced and services provided in a country during one year.  ]]> 2018-11-20 13:42:15 UTC https://padlet.com/joanneward/4yptv9sd6l2t/wish/306333987 Question 3 zara_donnellan16 https://padlet.com/joanneward/4yptv9sd6l2t/wish/306334456  Inflation-Price of goods increasing 
Inflation is measured by CPI (Consumer price index) ]]> 2018-11-20 13:43:08 UTC https://padlet.com/joanneward/4yptv9sd6l2t/wish/306334456 Q3 ThomasJones https://padlet.com/joanneward/4yptv9sd6l2t/wish/306335376  Inflation is a rise in the price of goods. It is measured by the consumer price index which looks at the cost of a basket of goods overtime. 

]]> 2018-11-20 13:44:55 UTC https://padlet.com/joanneward/4yptv9sd6l2t/wish/306335376 Q1 jadeavison3 https://padlet.com/joanneward/4yptv9sd6l2t/wish/306335842
  •  A business cycle is a cycle of fluctuations in the Gross Domestic Product GDP Formula The GDP Formula consists of consumption, government spending, investments, and net exports. We break down the GDP formula into steps in this guide.

    • ]]>     2018-11-20 13:45:43 UTC https://padlet.com/joanneward/4yptv9sd6l2t/wish/306335842     question 5 xpickthorne00 https://padlet.com/joanneward/4yptv9sd6l2t/wish/306336158 2018-11-20 13:46:21 UTC https://padlet.com/joanneward/4yptv9sd6l2t/wish/306336158 Question 1 hickton_n https://padlet.com/joanneward/4yptv9sd6l2t/wish/306336275 The business cycle is the movement of GDP whether it is expansion or contraction.]]> 2018-11-20 13:46:34 UTC https://padlet.com/joanneward/4yptv9sd6l2t/wish/306336275 question 3 xpickthorne00 https://padlet.com/joanneward/4yptv9sd6l2t/wish/306336610 inflation is a rise in the price of goods, that a business offers. it is measured by CPI- consumer price index ]]> 2018-11-20 13:47:15 UTC https://padlet.com/joanneward/4yptv9sd6l2t/wish/306336610 Question 2 niamhnoonan12 https://padlet.com/joanneward/4yptv9sd6l2t/wish/306336775
  • Increases the cost of borrowing 
  • Increase in mortgage interest payments. 
  • Increased incentive to save rather than spend. 
  • Increased incentive to save rather than spend.
  • Rising interest rates affect both consumers and firms. 
  • Government debt interest payments increase. 
  • Reduced confidence. 


    • ]]>     2018-11-20 13:47:35 UTC https://padlet.com/joanneward/4yptv9sd6l2t/wish/306336775     Question 5 zara_donnellan16 https://padlet.com/joanneward/4yptv9sd6l2t/wish/306337144  Deflation makes goods less expensive=customers may be put off buying expensive goods because they believe they will be cheaper in the future=reduced demand=harder for businesses to survive 

    ]]>     2018-11-20 13:48:20 UTC https://padlet.com/joanneward/4yptv9sd6l2t/wish/306337144     question 2 xpickthorne00 https://padlet.com/joanneward/4yptv9sd6l2t/wish/306337673 - customer saving and spending 
    - cash flow 
    - increases the cost of borrowing 
    - business planning  ]]>     2018-11-20 13:49:29 UTC https://padlet.com/joanneward/4yptv9sd6l2t/wish/306337673     Q1 harrisonpemberton00 https://padlet.com/joanneward/4yptv9sd6l2t/wish/306337724  
    1.  A business cycle is a cycle of fluctuations in the Gross Domestic Product GDP Formula The GDP Formula consists of consumption, government spending, investments, and net exports. We break down the GDP formula into steps in this guide. 

    ]]>     2018-11-20 13:49:35 UTC https://padlet.com/joanneward/4yptv9sd6l2t/wish/306337724     Q jadeavison3 https://padlet.com/joanneward/4yptv9sd6l2t/wish/306337954
    1. Increases the cost of borrowing. With higher interest rates, interest payments on credit cards and loans are more expensive. Therefore this discourages people from borrowing and spending. People who already have loans will have less disposable income because they spend more on interest payments. Therefore other areas of consumption will fall.
    2. Increase in mortgage interest payments. Related to the first point is the fact that interest payments on variable mortgages will increase. This will have a significant impact on consumer spending. This is because a 0. 5% increase in interest rates can increase the cost of a £100,000 mortgage by £60 per month. This is a significant impact on personal discretionary income.
    3. Increased incentive to save rather than spend. Higher interest rates make it more attractive to save in a deposit account because of the interest gained.

    ]]>     2018-11-20 13:50:04 UTC https://padlet.com/joanneward/4yptv9sd6l2t/wish/306337954     Question 1 morgancollegeemail1 https://padlet.com/joanneward/4yptv9sd6l2t/wish/306338240  a cycle or series of cycles of economic expansion and contraction. ]]> 2018-11-20 13:50:41 UTC https://padlet.com/joanneward/4yptv9sd6l2t/wish/306338240 Q2 ThomasJones https://padlet.com/joanneward/4yptv9sd6l2t/wish/306338253 - Government Spending
    - Investment in Business
    - House Prices
    - Construction
    - Inflation of Goods and Wages

    ]]>     2018-11-20 13:50:43 UTC https://padlet.com/joanneward/4yptv9sd6l2t/wish/306338253     Q3 harrisonpemberton00 https://padlet.com/joanneward/4yptv9sd6l2t/wish/306338323   Inflation-Price of goods increasing 
    Inflation is measured by CPI (Consumer price index) ]]>     2018-11-20 13:50:51 UTC https://padlet.com/joanneward/4yptv9sd6l2t/wish/306338323     Question 2. morgancollegeemail1 https://padlet.com/joanneward/4yptv9sd6l2t/wish/306338454 When consumers pay less in interest, this gives them more money to spend, which can create a ripple effect of increased spending throughout the economy. Businesses and farmers also benefit from lower interest rates, as it encourages them to make large equipment purchases due to the low cost of borrowing.]]> 2018-11-20 13:51:08 UTC https://padlet.com/joanneward/4yptv9sd6l2t/wish/306338454 q2 harrisonpemberton00 https://padlet.com/joanneward/4yptv9sd6l2t/wish/306338483  
    Increase of interest rates:
    • Increases the cost of borrowing 
    • Increase in mortgage interest payments. 
    • Increased incentive to save rather than spend. 
    • Increased incentive to save rather than spend. 
    ]]>     2018-11-20 13:51:11 UTC https://padlet.com/joanneward/4yptv9sd6l2t/wish/306338483     Q3 jadeavison3 https://padlet.com/joanneward/4yptv9sd6l2t/wish/306338645 Inflation is when the cost of goods and services goes up.
    Measuring inflation is a difficult problem for government statisticians. To do this, a number of goods that are representative of the economy are put together into what is referred to as a "market basket." The cost of this basket is then compared over time. 


    ]]>     2018-11-20 13:51:34 UTC https://padlet.com/joanneward/4yptv9sd6l2t/wish/306338645     Q1. justebugi https://padlet.com/joanneward/4yptv9sd6l2t/wish/306338987  The business cycle describes the rise and fall in production output of goods and services in an economy. Business cycles are generally measured using rise and fall in real – inflation-adjusted – gross domestic product (GDP), which includes output from the household and nonprofit sector and the government sector, as well as business output.]]> 2018-11-20 13:52:20 UTC https://padlet.com/joanneward/4yptv9sd6l2t/wish/306338987 Question 2 hickton_n https://padlet.com/joanneward/4yptv9sd6l2t/wish/306339006 High interest rates:
    - Increased cost of borrowing
    - Increased return if saving
    - Reduced investment
    - Lower economic growth

    Lower interest rates:
    - Lower borrowing cost
    - Increased investment
    - Economic growth]]>     2018-11-20 13:52:23 UTC https://padlet.com/joanneward/4yptv9sd6l2t/wish/306339006     Question 1 zara_donnellan16 https://padlet.com/joanneward/4yptv9sd6l2t/wish/306339028  
    Economic cycle: Variations in the annual rate of growth of an economy over time


     
    ]]>     2018-11-20 13:52:26 UTC https://padlet.com/joanneward/4yptv9sd6l2t/wish/306339028     Question 3 niamhnoonan12 https://padlet.com/joanneward/4yptv9sd6l2t/wish/306339101  Inflation is a quantitative measure of the rate at which the average price level of a basket of selected goods and services in an economy increases over a period of time.
    Inflation is measured by Consumer Price Index (CPI) - A measure of price changes in consumer goods and services such as gasoline, food, clothing and automobiles. The CPI measures price change from the perspective of the purchaser.  


    ]]>     2018-11-20 13:52:38 UTC https://padlet.com/joanneward/4yptv9sd6l2t/wish/306339101     Question 3. morgancollegeemail1 https://padlet.com/joanneward/4yptv9sd6l2t/wish/306339433 inflation us measurements of the prices in the UK economy and it is measured by the CPI (consumer price index) ]]> 2018-11-20 13:53:21 UTC https://padlet.com/joanneward/4yptv9sd6l2t/wish/306339433 Q1 ThomasJones https://padlet.com/joanneward/4yptv9sd6l2t/wish/306339604 The business cycle is a measure of the current state of the UK's economy and how businesses are performing. It is measured using GDP, which stands for gross domestic product. This is a total of all of the goods and services sold in the UK.]]> 2018-11-20 13:53:46 UTC https://padlet.com/joanneward/4yptv9sd6l2t/wish/306339604 Question 4 zara_donnellan16 https://padlet.com/joanneward/4yptv9sd6l2t/wish/306339754 Increase of inflation-Price of goods increasing

    Consumers can afford less=lower consumer demand
     Businesses can afford less as costs increase = cut costs ( redundancies increase in unemployment further fall in demand for goods)

    Inflation makes goods more expensive- employees demand pay increases to cover costs

     If pay increases are not equal to inflations=in terms employees are paid less
     If pay increases are equal or higher that inflations=higher costs higher prices to cover costs

    ]]>     2018-11-20 13:54:05 UTC https://padlet.com/joanneward/4yptv9sd6l2t/wish/306339754     Question 4 niamhnoonan12 https://padlet.com/joanneward/4yptv9sd6l2t/wish/306340044 The minimum wage will rise eventually, prices will also increase. 

    Consumers will not be able to afford as many things.

    Many people face a cut in their wages or at best a pay freeze, rising inflation leads to a fall in real incomes. ]]>     2018-11-20 13:54:46 UTC https://padlet.com/joanneward/4yptv9sd6l2t/wish/306340044     Q4 jadeavison3 https://padlet.com/joanneward/4yptv9sd6l2t/wish/306340088 Many governments have set their central banks a target for a low but positive rate of inflation. They believe that persistently high inflation can have damaging economic and social consequences.
    1. Income redistribution: One risk of higher inflation is that it has a regressive effect on lower-income families and older people in society. This happen when prices for food and domestic utilities such as water and heating rises at a rapid rate
    2. Falling real incomes: With millions of people facing a cut in their wages or at best a pay freeze, rising inflation leads to a fall in real incomes. 
    ]]>     2018-11-20 13:54:52 UTC https://padlet.com/joanneward/4yptv9sd6l2t/wish/306340088     Question 4. morgancollegeemail1 https://padlet.com/joanneward/4yptv9sd6l2t/wish/306340458 The effects of inflation are  1. Erodes Purchasing Power6. Reduces Unemployment2. Encourages Spending and Investing7. Increases Growth3. Causes More Inflation8. Reduces Employment and Growth4. Raises the Cost of Borrowing9. Weakens (or Strengthens) the Currency5. Lowers the Cost of Borrowing.]]> 2018-11-20 13:55:38 UTC https://padlet.com/joanneward/4yptv9sd6l2t/wish/306340458 question 1: xpickthorne00 https://padlet.com/joanneward/4yptv9sd6l2t/wish/306340798  The business cycle is a cycle of expansions and contractions, GDP is an index by which this is measured ]]> 2018-11-20 13:56:17 UTC https://padlet.com/joanneward/4yptv9sd6l2t/wish/306340798 charliegshawcross https://padlet.com/joanneward/4yptv9sd6l2t/wish/306340858 2018-11-20 13:56:24 UTC https://padlet.com/joanneward/4yptv9sd6l2t/wish/306340858 Question 5 niamhnoonan12 https://padlet.com/joanneward/4yptv9sd6l2t/wish/306344965 Deflation is associated with an increase in interest rates, which will cause an increase in the real value of debt. As a result, consumers are likely to defer their spending.]]> 2018-11-20 14:04:24 UTC https://padlet.com/joanneward/4yptv9sd6l2t/wish/306344965 charliegshawcross https://padlet.com/joanneward/4yptv9sd6l2t/wish/306347509 2018-11-20 14:09:11 UTC https://padlet.com/joanneward/4yptv9sd6l2t/wish/306347509 morgancollegeemail1 https://padlet.com/joanneward/4yptv9sd6l2t/wish/306350264 https://www.youtube.com/watch?v=nyhKZSXt2FM]]> 2018-11-20 14:14:24 UTC https://padlet.com/joanneward/4yptv9sd6l2t/wish/306350264 LIKE 4 A R8 harrisonpemberton00 https://padlet.com/joanneward/4yptv9sd6l2t/wish/306354601 2018-11-20 14:21:59 UTC https://padlet.com/joanneward/4yptv9sd6l2t/wish/306354601