Real interest rates tend to ________ during the recession phase of the business cycle and ________ during the expansion phase of the business cycle   A. increase; decrease   B. decrease; decrease further   C. increase; increase further   D. decrease; increase   E. decrease; stay the same

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Q: business cycle

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Demand and Supply

The concept of demand and supply is important for various factors. One of them is studying and evaluating the condition of an economy within a certain period. The analysis or evaluation of the demand-side factors is important for the suppliers to understand the consumer or individual behaviour. The evaluation of supply-side factors is important for the consumer or individuals to understand that what kind of combination of an economic good or what kind of economic good and services he or she should consume to maximise his utility and minimise the cost. Therefore, in microeconomics, both of these concepts are extremely important to have an idea that what exactly is going on in the economy.