0
What are advantages and disadvantages of higher consumer spending?
Wiki User
∙ 11y ago
Advantages:
1. Profitability of Businesses increases
2. Businesses can invest - improve productivity
3. Economic Growth
Disadvantages:
1. Inflation - excess demand
2. Stress on raw materials
3. Workers need to work more intensively, hard to manage for businesses at times
Wiki User
∙ 11y ago
Add your answer:
Earn +20 pts
What are the advantages and disadvantages of a free economy?
Advantages: Competition > profit > innovation. Disadvantages: higher costs for consumers there are losers risk for an entrepreneur
Is it microeconomics or macroeconomics the effect of higher income taxes on total amount of consumer spending?
microeconomics
Which influence on spending deals with the motivation to purchase a product?
the price of the product and the willingness of the consumer to purchase the product impact the demand of the product by the consumer. lower the price, higher will be the demand and higher is the motivation level to buy the good.
What are the advantages and disadvantages of semi intensive system of farming?
it requires low investment and higher returns.
Shift in the aggregate demand curve?
Remember that aggregate demand is composed of consumer spending, investment spending, government spending, and net export spending. Many things affect consumer spending. The main things are consumer wealth, consumer expectations, household indebtedness, and taxes. The wealthier the consumers, the more they will spend. The higher the consumer's expectations are, the more they will spend. The lower the consumer's indebtedness, the more they will spend. The lower their taxes are, the more they will spend. If consumer spending increases, the aggregate demand curve will shift to the right. As for investment spendings: interest rates and expected returns affect this variable. As interest rates decrease, there will be more investments made. The higher a business's expected return is, the more they will invest. If more investments are being made, the aggregate demand curve will shift to the right. Change in government spending is pretty self explanatory. The more government decides to spend, the more aggregate demand will increase and therefore, shift to the right. For net expert spendings, a rising national income would mean more US exports. Moreover, a depreciation of the dollar causes more US exports. The more net exports there are, the more aggregate demand will increase and therefore, shift to the right.
According to the demand-pull theory, inflation is caused by:?
higher consumer spending
What are the advantages and disadvantages of a free economy?
Advantages: Competition > profit > innovation. Disadvantages: higher costs for consumers there are losers risk for an entrepreneur
What are the advantages and disadvantages of a Buy-American policy?
Advantage: Secure U.S. domestic industries, employment, and even economy. Disadvantage: Consumer probably have to pay higher price without competition.
What are the Advantages and disadvantages of buy American policy?
Advantage: Secure U.S. domestic industries, employment, and even economy. Disadvantage: Consumer probably have to pay higher price without competition.
What are the advantages and disadvantage of science and technology?
Advantages: Higher standard of living. Disadvantages: Unbalancing of natural order.
Is it microeconomics or macroeconomics the effect of higher income taxes on total amount of consumer spending?
microeconomics
What is advantages that a sexual organisms have that helps them to overcome these disadvantages?
They have higher reproductive rates.
What are the advantages and disadvantages of online-shop?
Higher chance of financial theft (apex)
What are 5 advantages and 5 disadvantages of complexity in higher organisms?
[object Object]
What are the advantages and disadvantages of an industrial policy?
Advantages are that there is more employment, less failure with global economy and less transportation costs. Disadvantages are that there are unemployment internationally, and higher prices.
What are Advantages and disadvantages of Russia in size and location?
Advantages : Popualtion Can Spread. Less Defoerstation. Potentail for more natural resources. Disadvantages : Higher taxes. Weak Borders
Advantages and disadvantages of companies going global?
advantages: increased sales, higher profits, new knowledge and experience Disadvantages: language barrier, additional costs, changed mindset
