Growth is when the economy improves after recession. The growth stage of the business cycle is the expansion stage. At this point, the business is doing well, growing rapidly and responding favourably to an active market. Demand for goods and services will grow, the business will start expanding because the economy is favourable. BP have more money to invest in their business, so they sell as many products as they can produce and bring a large amount of funds into growth activities to keep up with demand.
During growth inflation level rises and currently the British government have set an inflation target of 2%. When economy is growing this means the general cost of living is going up
When inflation level increases, the average cost of living standard, more people get employed. This means the overall economy is doing and this an average household will consume more than they would during recession, if the economy is doing, this will affect the economy because they would have more disposable income, this may have a positive effect on BP because more people are likely to be more cars, so more people are likely to visit BP. When the economy is growing production level also increases, this means company are producing more because of the increase in the demand, the demand will increase because there more money in the economy. This could increase BP’s sales.

Recovery is a period business activity increases indicating the end of a recession. Recovery mostly need a stimulus to start it, e.g. a cut in taxes, reduction in interest rate or investment by other countries. BP start to invest in their business, people are starting to get