The two reasons which describes best as to why consumption increases during a period of economic growth is because workers receive higher wages and more people acquire jobs and earn wages. When the economy of a country grows, this means national income in the country increases and thereby businesses earn profits and sales, increasing their productivity and thereby this leads to an increment in workers salaries and thereby employees have more money to spend on normal goods. When the economy grows, new businesses or even Multi-national Corporations would want to enter the market of this country thereby increasing the opportunities for employment. Thus, reducing unemployment.
