ECONOMICS
BUSINESS CYCLES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A representation concerning the patterns of expansion and contraction in the economy, consisting of the growth, peak, recession and trough phases
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An increase in sales results in increase in production which causes increase in employment leading to increased income which starts the cycle over again
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The lowest levels experienced during a recession
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The period in which business activity has reached a maximum
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Detailed explanation-1: -Which of the following describes the virtuous cycle? Increase in sales results in increase in production which causes increase in employment leading to increased income which starts the cycle over again.
Detailed explanation-2: -variants or virtuous cycle. : a chain of events in which one desirable occurrence leads to another which further promotes the first occurrence and so on resulting in a continuous process of improvement.
Detailed explanation-3: -Expansion The first stage in the business cycle is expansion. In this stage, there is an increase in positive economic indicators such as employment, income, output, wages, profits, demand, and supply of goods and services.
Detailed explanation-4: -The business cycle goes through four major phases: expansion, peak, contraction, and trough. All economies go through this cycle, though the length and intensity of each phase varies. The Federal Reserve helps to manage the cycle with monetary policy, while heads of state and governing bodies use fiscal policy.