A growth company tends to have very profitable reinvestment opportunities for its own retained earnings. Economic growth will affect Etisalat as it would increase their profits due to more people wanting more products and wanting to spend their money. As people have more money to spend on luxuries instead of the essentials it means that the higher value products will be brought. For example the Andrex toilet rolls will be brought instead of Etisalat value, because of this it means more money is being spent in the store which is an advantage for Etisalat. Recession occurs when people involved in business become more cautious and: * Customers cut back on spending, and start to save more * Manufactures and sellers cut back on their orders, produce fewer goods and start to cut back costs in general, including by laying off workers.
If exports were to increase this would result in an increase in AD, as the balance of payment is a factor. The subsequent result of this increase in AD would mean an increase in supply, leading to an increase in the rate of employment, as firms are forced to take on more workers in order to fulfil demand. This means that the increase in exports would reduce specifically cyclical unemployment ( demand deficient unemployment). This is because the increase in exports would result in a increase in AD, hence curing the deficient demand. Furthermore, the cost of the formerly unemployed, i.e.
Investment projects, via the multiplier effect should result in an increase in the GDP of the economy; However in order to undertake investment, there must a high savings ratio must be obtained as it is essential for the accumulation of capital. Labour plays a critical role in achieving economic growth. The higher the number of workers there is in an economy should lead to economic growth. If there are more people working and unemployment levels are relatively low, then there is likely to be the achievement of economic growth as human resources
When there is a greater disposable personal income this will allow consumption to increase due to the money saved from the lower tax rate. Through consumption increasing this will favour economic because the gross domestic product has increased. When government expenditures are increased it will have a multiplier effect on aggregate demand. Because of the multiplier effect, the government can increase spending by only a small amount to achieve a larger, necessary increase in aggregate demand. By doing so, the economy will be able to attain an equilibrium level of real
Economy can grow by two methods one by using more resources or by using same amount of resources more efficiently or effectively. And if the economic growth is achieved by using more productive resources it will result in increasing per capita
For instance, they would get a good job if you had a profession. That case it would be easier to get a job. Also, they will have a higher salary compared to other countries. Furthermore, USA’s salary is higher than other countries so that you will have a better economic future. For example, save money for retirement and your job.
Subsidies in effect lower the cost of production which implies that, other things equal, profits should increase for a given quantity of output. Following this logic larger profits should result in an increase in the amount of taxes paid, ceteris paribus. Higher tax revenues
Therefore, this means that the average Bahraini disposable income will significantly increase, hence, they will increase spending on goods and services. An increase in salaries is therefore a direct signal interpreted by businesses to consider in planning their business offerings. A salary increase might also affect the banking sector, as savings may increase, resulting in extra liquidity with the banks, which is then channeled back through consumer loans or financing facilities for the business sector. Indirect signals are causal in terms of not being precisely valid and reliable. An economist will create a conclusion based on a certain observation that has a relation to the other.