ASSIGNMENT #5

1. What will happen if there is an increase in the level of economic activity?

On the off chance that the economy grows than it has ability to, costs will rise rapidly and things
become costlier. This happens when individuals need to purchase beyond what shops and plants can supply.
Economic growth is estimated as far as gross domestic product (GDP). You can compute GDP by including
what everybody has spent: families, the public authority, organizations, etc.

Thusly, GDP addresses the absolute interest for labor and products. At the point when the economy is
developing, this implies individuals are spending more. Be that as it may, retailers and factories can
unfortunately supply a limited amount of much at
some random time. It's normal that costs will now
and again spike for some specific thing. However,
in the event that request dominates supply across
all enterprises in the economy simultaneously,
then, at that point costs could increment quickly
no matter how you look at it. This implies you
may get high paces of expansion.