Quick Answer: What Decisions Does The Business Cycle Help Businesses Make? Check All That Apply.

What decisions does the business cycle help businesses?

1-whether to stay at old facilities or move to new facilities.

2-whether to grow or shrink the business.

3-whether to keep or change products.

4-whether to increase or decrease production..

What is the name of the period when an economy begins to shrink recession/depression recovery prosperity?

Answer Expert Verified Recession is a significant decline in economic activity that goes on for more than a few months. It combines negative economic growth, a decrease in industrial production, employment, real income and wholesale-retail trade.

What is the business cycle in economics?

What Is a Business Cycle? “Business cycles are a type of fluctuation found in the aggregate economic activity of nations… a cycle consists of expansions occurring at about the same time in many economic activities, followed by similarly general recessions…

Why are imports considered a leakage factor?

the total amount of goods demanded or supplied. Why are imports, which bring goods into a country, considered a leakage factor? the money paid to producers of imports leaves the country.

How does supply behave in the short run and long run?

Quantity supplied is determined by production costs, and quantity demanded is determined by desire for the product. … According to this graph, how does supply behave in the short run and long run? Output remains constant. Output increases.

How many quarters is a depression?

A recession is a normal part of the business cycle that generally occurs when GDP contracts for at least two quarters. A depression, on the other hand, is an extreme fall in economic activity that lasts for years, rather than just several quarters.

What is the difference between inflation and deflation?

Deflation: An Overview. Inflation occurs when the prices of goods and services rise, while deflation occurs when those prices decrease. The balance between these two economic conditions, opposite sides of the same coin, is delicate and an economy can quickly swing from one condition to the other.

What should I invest in during deflation?

Deflation hedges include investment-grade bonds, defensive stocks (those of consumer goods companies), dividend-paying stocks, and cash. A diversified portfolio that includes both types of investments can provide a measure of protection, regardless of what happens in the economy.

How did the contribution of the services sector to GDP change between 2009 and 2011 quizlet?

How did the contribution of the services sector to GDP change between 2009 and 2011? It rose significantly. Jim lost his job in a car assembly factory to a robot and his skills will no longer be needed. … GRAPH: The map shows GDP per capita in the United States for a given year.

What is the general price?

The general price level is a hypothetical measure of overall prices for some set of goods and services (the consumer basket), in an economy or monetary union during a given interval (generally one day), normalized relative to some base set.

What is full inflation?

Demand-pull inflation is the upward pressure on prices that follows a shortage in supply. … Demand-pull inflation is a tenet of Keynesian economics that describes the effects of an imbalance in aggregate supply and demand. When the aggregate demand in an economy strongly outweighs the aggregate supply, prices go up.

Which best describes the circular flow model?

Which statement best describes the circular flow model? The model represents the movement of money and resources throughout the economy. The model represents the interactions within sectors.

What are the 4 types of inflation?

There are four main types of inflation, categorized by their speed. They are creeping, walking, galloping, and hyperinflation. There are specific types of asset inflation and also wage inflation. Some experts say demand-pull and cost-push inflation are two more types, but they are causes of inflation.

Does a depression always follow a recession quizlet?

Does a depression always follow a recession? No, a depression is indicated when the recession is exceptionally long.

How many people died because of the Great Depression?

How many people in the US starved to death during the Great Depression? I was trying to look this up earlier and could not easily find reliable information on the internet, mostly due to a new popular claim that 7 million people starved to death in the Great Depression!

What makes a depression?

A depression is a major downswing (far more severe than a downward trend) in the business cycle; one which is characterized by sharply reduced industrial production, widespread unemployment, a serious decline or cessation of growth in construction, and great reductions in international trade and capital movements.

What advantages does money over bartered goods?

Money is more portable than bartered goods. Money is always worth more than bartered goods. Money allows people to easily store value they earn.

What term is used in macroeconomics to describe the total supply?

aggregateWhat term is used in macroeconomics to describe the total supply and the total demand? The term used to describe total supply and demand is aggregate.

What are 3 types of inflation?

Inflation is classified into three types: Demand-Pull inflation, Cost-Push inflation, and Built-In inflation.

When a government decides to limit the number of goods that can be sold to another nation that government is creating?

When a government decides to limit the number of goods that can be sold to another nation, that government is creating monetary policy. trade policy. fiscal policy. regulatory policy.

What are the signs of high inflation?

Interest rates increase. Purchasing power falls. Fewer fixed rate bank loans. Production begins to fall.