What generally causes the business cycle? What are the four phases of a single business cycle? What are the problems associated with the business cycle?
What will be an ideal response?
Changes in total spending (aggregate demand) are what generally cause changes in the business cycle. The four phases of a single business cycle is a peak, recession, trough and an expansion. The problems associated with a recession are cyclical unemployment and slow growth. The problem with an expanding economy is (demand-pull) inflation.
You might also like to view...
If this is a closed economy, the price of a TV will be ________. 
A. $75 B. $275 C. $125 D. $175
A good economic model should capture as many details about real-world behavior as possible
a. True b. False Indicate whether the statement is true or false
The high-income nations of the world—including the United States, Canada, the Western European countries, and Japan—typically have GDP per capita in the range of _____________.
a. $6,000 to $12,000 b. $20,000 to $50,000 d. $60,000 to $80,000 d. $80,000 to $120,000
An increase in a per unit production tax ______ supply.
Fill in the blank(s) with the appropriate word(s).