Question

Why a shortened or shrinking business cycle would create problems for many firms?

Answer 1

A period of economic growth (fast growth in GDP) continually ends in inflation with diverse monetary charges. This inflationary increase tends to be unsustainable and ends in a bust (recession). The most important problem of the enterprise cycle is that a recession represents a huge wastage of sources.

Business cycles are the "ups and downs" in financial activity, described in phrases of durations of enlargement or recession. Throughout expansions, the financial system, measured via indicators like jobs, production, and sales, is developing--in actual terms, with the exception of the results of inflation.

The business cycles generated through fluctuations in inventories are referred to as minor or short business cycles. these durations, which generally close about two to 4 years, are now and again additionally called inventory cycles.

Learn more about business cycles here: brainly.com/question/20335740

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