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weeeeeb [17]
3 years ago
7

Why do business cycles occur in free enterprise system?

English
2 answers:
zlopas [31]3 years ago
8 0
<span>it is because economic decisions about factors such as prices, production, and consumption</span>
matrenka [14]3 years ago
7 0

Business cycles occur in free enterprise system because economic decisions about factors such as prices, production, and consumption are determined by the market.

The business cycle is the upward and downward movements of levels of GDP (gross domestic product) and refers to the period of expansions and contractions, that is when the economy shriks, in the level of economic activities around a long-term growth trend.

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