Unrest Market

EFFECT OF UNREST ON THE MARKET
Name
Institution
The recent terrorist attacks had a negative impact on the UK’s economy. Some of the major attacks were the famous London Bridge, Manchester, and the Westminster terrorism incidents. They claimed the lives of several citizens thus creating fear and uncertainty among the consumers. In the end, the UK economy recorded a sharp decline in its GDP. According to research findings by RAND Europe, the UK terrorist attacks led to an economic output loss amounting to € 3.5 billion (Morrison, 2018). Based, on such finding, it is clear that the attacks led to a decline in the quantity of supply. Most businesses hold on to their investment for fear of making further losses thus leading to a decline in the volume of output. Additionally, the events were accompanied by a decline in the volume of investments in the UK economy (Morrison, 2018).
However, the market demand was not affected by the recent events of unrest in the UK. Most consumers maintained their volume of consumption. The argument is based on the research study by RAND Europe which affirmed that consumer purchasing habit was constant after the terrorist attack (Morrison, 2018). They preferred spending their income on consumption as opposed to saving. Therefore, the terrorist attack affected the UK’s market equilibrium. The overall quantity of goods and service supplied to the market declined which in turn affected the price level that is prevailing in the market.
The volume of wages was also likely to fall after the terrorist attacks.

Most investors would not fully exploit the available resources thus leading to a decline in the employment rate. In the end, the over the volume of UK’s national income would reduce. The terrorist attacks had a lot of impact on most of the UK’s products. However, the effect was prevalent in the tourism sector since its key facilities recorded losses after the events (Mahy, 2017). International tourists feared to visit certain destinations in the UK thus implying that the attack also influenced the performance of international trade. References
Mahy, E. (2017). Manchester business recovering after attack impact. BBC News. Retrieved from
https://www.bbc.com/news/business-40710154. Accessed on 11th August 2018
Morrison, C. (2018). Terror attacks cost the UK economy £ 3bn last year, new research shows.
Independent. Retrieved from https://www.independent.co.ku/news/business/news/terror-attacks-uk-economy-cost-manchester-arena-westminister-london-bridge-a8385661.html. Accessed on 6th June 2018