Economic Variables (Demand Factor)
Macro-economic factors affecting demand: GDP growth, unemployment, inflation, interest rates, exchange rates.
Real World
When the Bank of England cut interest rates to near zero in 2020, demand for mortgages surged as borrowing became cheaper — Taylor Wimpey reported a sharp rise in new home reservations within months.
Exam Focus
Link each economic variable to a named mechanism (e.g. lower interest rates → cheaper credit → higher consumer spending) for full marks.
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