Macroeconomic
Large-scale economic factors affecting overall economy.
Formula
Real GDP Growth = Nominal GDP Growth − Inflation Rate
Real World
During the 2008 financial crisis, rising unemployment and falling consumer confidence caused UK car sales to drop 30%, directly hitting manufacturers like Jaguar Land Rover.
Exam Focus
Name the specific macroeconomic factor and trace its precise impact on the business — vague 'economy is bad' answers score poorly.
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