2008 - 2013 Flashcards
Recession
2 consecutive quarters of negative economic growth
What did the recession cause?
A rising unemployment rate
What are the effects of a rising unemployment rate?
Reduced incomes
Can’t afford to buy products
Decreased demand = decreased sales
Why did AFL’s sales figures begin to rise after 2013?
As the UK was out of the recession
Real Income
Money an individual earns from working, that has been adjusted to take into account general levels of prices- like inflation
Why is the UK coming out of a recession good for AFL?
More have jobs, so they have an increased income, leading to an increase in sales and profit
Why is the UK coming out of a recession bad for AFL?
Increased wages (real income) meaning increased costs, making it less likely they will return to profit
Why can’t AFL compete with its’ rivals in the far east?
They have lower labour costs, so their products are cheaper
