Question

Which best describes the nature of cause and effect in the context of the business cycle? Each effect has other effects. Causes and effects cannot be easily defined. A cause has multiple independent effects. Each effect has a cause.

Answer 1

The option that best describes the nature of the cause and effect in the context of the business cycle is A. Each effect has other effects.

All markets economies go through periods when consumption-spending on goods and services rises. Consumers buy more, companies invest more, and production, income, profit and employment increase. These periods are always followed by periods when investment and spending fall, and unemployment rises. This is the business cycle.

Answer 2

Each effect has other effects.

Further Explanation:

The business cycle which is also known as the trade cycle or economic cycle is the upward or downward movement of Gross domestic product and it also affects the long-term trend. The fluctuation in the business cycle involves the shifts overtime period which is related to the economic growth and the periods which are related to the stagnation or decline. Business cycle is measured by considering the growth rate of the GDP.  

During the period of the industrial revolution, technological progress had very much effect on the economy as compared to other fluctuations that take place in debit or credit and the main cause behind its decline started from the period of great depression and that led to the multi-year economic decline. If we talk about the mainstream economic systems, there has always been debate over external and external economics and that has caused various causes in the economic cycles.  

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Answer Details:

Grade: High School

Chapter: Business Cycle

Subject: English

Keywords:

Business Cycle, Economy, External, internal, Fluctuations, Technology, Mainstream, Multi-year.