Question

In: Economics

Each business cycle has the same basic elements of peak, recession, trough, and recovery. Furthermore:


Each business cycle has the same basic elements of peak, recession, trough, and recovery. Furthermore:

 the business cycle cannot be on an upward trend. 

 no two business cycles are exactly alike in cause and duration 

 the business cycle has a steady cycle of ten years. 

 the recession and recovery are of equal duration and magnitude.

Solutions

Expert Solution

Second option is correct

the cause of each business cycle is different because it depends upon the different economic situation which is influenced by the economic activity and the policy making of the particular economy. The duration of each business cycle is different which depends upon the severity of the business cycle, recognition and response of the government, and the reaction of the economic agents.


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