Assignment Three – Task One and Two – P5 + M2.
Economic Environment:
The totality of economic factors, such as employment, income, inflation, interest rates, productivity, and wealth, that influence the buying behaviour of consumers and institutions.
Business Cycle:
A cycle, or series of cycles of economic expansion and contraction.

Growth and Recession:
Period of general economic decline, defined usually as a contraction in the GDP for six months (two consecutive quarters) or longer. Marked by high unemployment, stagnant wages, and fall in retail sales, a recession generally does not last longer than one year and is much milder than a depression. Although recessions are considered a normal part of a capitalist economy, there is no unanimity of economists on its causes.

The economic environment is all of the economic factors such as employment, income, inflation, interest rates, productivity and wealth that influences the buying patterns of customers.

An economic boom occurs when there is a high period of fast economic growth. The output is high because of an increased demand unemployment being low.
After experiencing an economic boom, then comes the recession. This happens when the economic growth slows down and the level of output decreases. Unemployment is likely to increase and organisations may lose confidence and reduce their investments.
After the recession there is a slump. This is a period when outputs slow down because of a reduction in demand. Customers confidence in organisations may begin to diminish.
Following the slump is a period of growth. This is the period when business activity surges and Gross Domestic Product (GDP) expands until reaching its peak.
During the Boom, more people will be in work, paying their taxes, so the government may have a larger budget to spend on education. During the Bust, the government may reduce the