How Government Spending And The Multiplier Effect Affect A Business.

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Importance of government spending in the economy:

Local level: If the government spending was used on the local level, it would be important as it will expand on local areas and improve in such areas by providing leisure centres, fun areas in parks such as swings and slides etc….. The more money the government spends within such areas the more people there will be that will spend their money on going to such areas it has been spent on such as the leisure centres it can be a benefit for such businesses locally.

National level: If the government spending are spent on the national level this would be very important as it will allow more jobs to be created which then decreases the rate of unemployment, this may only occur as more businesses will begin to open or may even begin to expand on their businesses by providing more services for the customers. If such does occur then the working class will have stable incomes which will even allow them to buy luxury items, from which people will begin to pay council taxes where more wealth is made for the country.

European level: If the government spending was used on the European level, then this would be important because in this way the country will begin increasing more of their wealth by demand being created for the UK products from which more income will be coming in to the country rather than going out, this will be the main way to increase the wealth in the country, help it from reaching it to slump and recession period.

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The effect on AL-MURAD when government spending is declining:

If the government spending begins to decline then AL-MURAD as well as other companies will be affected in a negative way, as they will not be able to expand on their business and not be able to provide certain products and services due to lack of government spending because the government will not be investing on the economy as much to be able to increase businesses profits and people receiving jobs, customers not buying the products as the government will not spend money improving on the facilities and expanding on ...

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