Question

What is the difference between a business cycle and the day-to-day ups and downs of the market? a. The day-to-day ups and downs of the market can be much more extreme than a business cycle. b. The day-to-day fluctuations are more likely to have an impact on people’s finances. c. A business cycle is usually more restricted, whereas market fluctuations are worldwide. d. A business cycle is a major, prolonged fluctuation rather than a day-to-day movement.

Answer 1

Answer:

d. A business cycle is a major, prolonged fluctuation rather than a day-to-day movement.

Explanation:

The business cycle, or as it is also known, the trade cycle, are a series of long ups and downs that occur to any nation market and it is formed by 4 stages:

Expansion

Crisis

Recesion

Recovery

This 4 stages can affect the personal finances of the common people, because each of this can last from a year to a decade, the great depression was the crisis of its trade cycle and it lasted a decade. A day-to-day movement can be perjudicial on a certain level, but a recesion is a bad prolongued period of financial struggle for all people, as well as expansion and good days.