Marketing And The Business Environment - Business Cycles and Their Relevance to Business Organisations
Alan Shave Student No. 0367668
Assignment 1 Marketing And The Business Environment
Business Cycles and Their Relevance to Business Organisations
The business cycle is the name that is given to the pattern of changes in national income. Generally it is recognised that it is a result of variation in the total amount of spending in the economy or the quantity that is demanded. The spending in the economy changes for a few reasons. One is that alterations in Economic policy can cause swings in spending within the economy. Another is that the performance and confidence of financial markets can suddenly change from the lively to the depressed, meaning that consumer spending and savings suffer.
Using appropriate data (Office Of National Statistics)(2001) I have created a graph and table showing the GDP and percentage growth of British Economy from 1980 to 2001. As both clearly show, the GDP has been fluctuating since 1980 and has been through a number of slumps and recoveries. Around 1980 -1981 when the data starts, it's apparent that the economy is experiencing a recession and slump. However around 1983 to 1988 a recovery begins and continues, creating an economic boom in 1989 and 1990. During the boom, the economy experienced high output and low unemployment but this also comes with high inflation. As often happens in the business cycle, this high inflation led to another recession in the early 90's. This recession then brought another slump, however it did not last for long and was followed with a long spell of recovery from 1993 to 2001. Using the data till 2001 and the knowledge that the business cycle repeats itself, it appears that soon after 2001 there would be a potential boom.
Assignment 1 Marketing And The Business Environment
Business Cycles and Their Relevance to Business Organisations
The business cycle is the name that is given to the pattern of changes in national income. Generally it is recognised that it is a result of variation in the total amount of spending in the economy or the quantity that is demanded. The spending in the economy changes for a few reasons. One is that alterations in Economic policy can cause swings in spending within the economy. Another is that the performance and confidence of financial markets can suddenly change from the lively to the depressed, meaning that consumer spending and savings suffer.
Using appropriate data (Office Of National Statistics)(2001) I have created a graph and table showing the GDP and percentage growth of British Economy from 1980 to 2001. As both clearly show, the GDP has been fluctuating since 1980 and has been through a number of slumps and recoveries. Around 1980 -1981 when the data starts, it's apparent that the economy is experiencing a recession and slump. However around 1983 to 1988 a recovery begins and continues, creating an economic boom in 1989 and 1990. During the boom, the economy experienced high output and low unemployment but this also comes with high inflation. As often happens in the business cycle, this high inflation led to another recession in the early 90's. This recession then brought another slump, however it did not last for long and was followed with a long spell of recovery from 1993 to 2001. Using the data till 2001 and the knowledge that the business cycle repeats itself, it appears that soon after 2001 there would be a potential boom.