ECONOMICS
BUSINESS CYCLES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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short term war provides jobs
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long term growth always occurs
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scarcity causes war to a have a negative long term effect
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None of the above
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Detailed explanation-1: -An economic cycle, which is also referred to as a business cycle, has four stages: expansion, peak, contraction, and trough.
Detailed explanation-2: -Impact of business cycle on economy A volatile business cycle is considered bad for the economy. A period of economic boom (rapid growth in GDP) invariably leads to inflation with various economic costs. This inflationary growth tends to be unsustainable and leads to a bust (recession).
Detailed explanation-3: -Wars destroy human and physical capital, shift resources to less efficient uses, divert international trade and capital flows, and disrupt global supply chains.
Detailed explanation-4: -1] Changes in Demand. Browse more Topics under Business Cycles. 2] Fluctuations in Investments. 3] Macroeconomic Policies. 4] Supply of Money. 1] Wars. 2] Technology Shocks. 3] Natural Factors. More items