GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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If businesses can decrease the amount of labor needed to increase inventories, the result will most likely be-
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increased taxes
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economic growth
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increased inflation
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decreased productivity
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Explanation:
Detailed explanation-1: -The business cycle model shows how a nation’s real GDP fluctuates over time, going through phases as aggregate output increases and decreases. Over the long-run, the business cycle shows a steady increase in potential output in a growing economy.
Detailed explanation-2: -Economic growth can be caused by random fluctuations, seasonal fluctuations, changes in the business cycle, and long-term structural causes. Policy can influence the latter two. Business cycles refer to the regular cyclical pattern of economic boom (expansions) and bust (recessions).
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