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    Can anyone help me?

    what might the problems and opportunities be for british firms if there was a 50% rise in GDP in the next 15 years?

    Any ideas?
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    (Original post by angellotte)
    Can anyone help me?

    what might the problems and opportunities be for british firms if there was a 50% rise in GDP in the next 15 years?

    Any ideas?
    If GDP rises, people's real incomes increase. This means that they can afford to import more goods from abroad, which may reduce the aggregate demand in the UK?
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    GDP will be flucuating, so it will be hard for firms to predict future outcomes and so won't be able to make fully informed decisions on potential investments.
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    Might I point out that 50% in 15 years is actually slightly below the long-term trend. Trick question.
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    Clever "thepants." I'd never have noticed that.
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    I say the problem would be that the labor force (population) will not increase at the same rate, so it will cause increasing production costs because the high demand for labor, loosing competitiveness in respect with other countries. Of course, this could be solved if inmigration restrictions were lifted or eased, but that involves a lot of other problems.
 
 
 

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