ECONOMICS
BUSINESS CYCLES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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the economy will grow because people will spend money, businesses will hire people, etc
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a contraction will occur
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a peak is coming
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a recession will follow
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Detailed explanation-1: -Perception, and expectation, is particularly important when it comes to the economy and how you approach decision-making for the future. If your personal perceptions and resulting decisions are misaligned with the upcoming economic realities, your business will not be in the best position to succeed.
Detailed explanation-2: -Webster’s Unabridged Dictionary states that perception is apprehension by the mind of what is presented to it. Perception plays just as important a role as other economic issues like interest rates, employment figures, inflation, government spending, tax cuts, and the like.
Detailed explanation-3: -Keynes argued that governments should solve problems in the short run rather than wait for market forces to fix things over the long run, because, as he wrote, “In the long run, we are all dead.” This does not mean that Keynesians advocate adjusting policies every few months to keep the economy at full employment.
Detailed explanation-4: -An economy is said to be doing well when real Gross Domestic Product (a measure of economic growth) is increasing.