IGCSE Business Studies: Chapter 6.1 Economic Issues

IGCSE Business Studies: 6.1 Economic Issues

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Time stamps

00:00 - Intro
00:11 - Key terms
02:14 - Growth
02:47 - Boom
03:26 - Recession
04:02 - Slump
04:53 - Inflation
05:41 - Unemployment
06:33 - Economic growth
07:47 - Public expenditure
09:01 - Tax
10:22 - Interest rate
11:59 - Business responses
12:30 - Solved examination questions

In this video, I guide you through Chapter 6.1 on economic issues, focusing on key terms such as Gross Domestic Product (GDP), inflation, and unemployment. GDP represents the value of goods and services produced annually in a country, demonstrating how increased production leads to higher employment and spending. Inflation is the rise in prices over time, illustrated by competition for limited resources, affecting everyone in the economy. Unemployment, the percentage of those unable to find jobs, has significant implications for businesses and consumers alike.
We explore the business cycle, including growth, boom, recession, and slump. Each phase affects GDP, employment, and business revenues. The importance of government objectives is highlighted, emphasizing the need for stable inflation and low unemployment to foster economic growth. We also discuss fiscal policy, detailing how government spending on infrastructure can boost business activity and job creation, while high taxes can reduce disposable income and spending.
Finally, I touch on the impact of interest rates on borrowing costs and consumer spending, leading to potential changes in business strategies.