Business Org Proj.

Business Org Proj.

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  • So today kids, we will be talking about Prosperity. First thing off, it is caused when there is low unemployment rate. Which means there will also be high production rate. With all of this, new businesses will be opening too as the overall cause. 
  • So you're saying that people will be able to buy more G&S since there is more money overall.
  • An effect would be that since this is occurring, banks will be more lenient in lending money therefore new businesses open up right?
  • Also that prices will go up due to all the demand of the people and since production is increasing.
  • Yes, with all this, there will be a huge positive impact on the economic activity as there will a lot of money flow. The GDP will skyrocket as more and more things are being bought and sold. Lastly, the production of G&S also will skyrocket due to all these increase and that's how it will affect us and the economy. 
  • Oh no! The GDP is going down. We must have a drop in productivity for this! Unemployment rate must be increasing as well. Can't forget about inflation too. 
  • GDP
  • There will be some effects from this. People will stop buying the non-essentials ya know? They will try to preserve their money and get out of debt too. 
  • With this there will be a very negative impact on the economic activity. As everyone will be preserving their money for important things. The production of goods and services will continue to decline as long as unemployment rate is also increasing. 
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