Economics Today and Tomorrow, Student Edition
1st Edition
ISBN: 9780078747663
Author: McGraw-Hill
Publisher: Glencoe/McGraw-Hill School Pub Co
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Question
Chapter 13.5, Problem 2R
To determine
The affect of listed terms on the business cycle.
Expert Solution & Answer
Explanation of Solution
The effect on business cycle due to the given terms are as explained below:
| Products |
| Availability of products in an economy also affects the business cycle. When products are available in an economy, there is demand in economy and there is expansion in economy. |
| Policy |
| Change in policies are main reason for the business cycles. The business cycle goes up and down due to the changing policies of government. |
| Investment |
| Increase in investment causes expansion in the business cycle. However, when businesses feel that there can be economic downturn, they cut investment which can cause recession. |
| Psychology |
| Business cycle also sees fluctuations due to the psychological reactions of people on an event. This can be due to any event like terrorist attacks or change in authorities. Markets crash or face major depression in these kind of situations. |
Economics Concept Introduction
Introduction:
Business cycle- The uneven changes in the level of total output that is measured by real
Chapter 13 Solutions
Economics Today and Tomorrow, Student Edition
Ch. 13.1 - Prob. 1RCh. 13.1 - Prob. 2RCh. 13.1 - Prob. 3RCh. 13.1 - Prob. 4RCh. 13.1 - Prob. 5RCh. 13.2 - Prob. 1RCh. 13.2 - Prob. 2RCh. 13.2 - Prob. 3RCh. 13.2 - Prob. 4RCh. 13.3 - Prob. 1R
Ch. 13.3 - Prob. 2RCh. 13.3 - Prob. 3RCh. 13.3 - Prob. 4RCh. 13.4 - Prob. 1RCh. 13.4 - Prob. 2RCh. 13.4 - Prob. 3RCh. 13.4 - Prob. 4RCh. 13.5 - Prob. 1RCh. 13.5 - Prob. 2RCh. 13.5 - Prob. 3RCh. 13.5 - Prob. 4RCh. 13.5 - Prob. 5RCh. 13 - Prob. 1AACh. 13 - Prob. 2AACh. 13 - Prob. 3AACh. 13 - Prob. 4AACh. 13 - Prob. 5AACh. 13 - Prob. 6AACh. 13 - Prob. 7AACh. 13 - Prob. 8AACh. 13 - Prob. 9AACh. 13 - Prob. 10AACh. 13 - Prob. 11AACh. 13 - Prob. 12AACh. 13 - Prob. 13AACh. 13 - Prob. 14AACh. 13 - Prob. 15AACh. 13 - Prob. 16AACh. 13 - Prob. 17AACh. 13 - Prob. 18AACh. 13 - Prob. 19AACh. 13 - Prob. 20AACh. 13 - Prob. 21AACh. 13 - Prob. 22AACh. 13 - Prob. 23AA
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