Question

What is a business cycle? a period of economic growth followed by economic contraction the amount of time it takes a business to produce its products a dangerous time for all businesses a period of increased economic growth

Answer 1

Business cycle and its growth followed by economic contraction the amount of time it takes a business to produce products in the following way.

Explanation:

The business cycle is the periodic but irregular up-and-down movement in economic activity, measured by fluctuations in real gross domestic product (GDP) and other macroeconomic variables.

A business cycle is typically characterized by four phases—recession, recovery, growth, and decline—that repeat themselves over time.

Economists note, however, that complete business cycles vary in length. The duration of business cycles can be anywhere from about two to twelve years, with most cycles averaging six years in length.

FACTORS THAT SHAPE BUSINESS CYCLES

Volatility of Investment Spending

• Variations in investment spending is one of the important factors in business cycles. Investment spending is considered the most volatile component of the aggregate or total demand (it varies much more from year to year than the largest component of the aggregate demand, the consumption spending), and empirical studies by economists have revealed that the volatility of the investment component is an important factor in explaining business cycles in the United States.

Momentum

Technological Innovations

Variations in Inventories

Fluctuations in Government Spending

Politically Generated Business Cycles

Monetary Policies

Fluctuations in Exports and Imports

Answer 2

Answer:

The business cycle, also known as the economic cycle or trade cycle, is the downward and upward movement of gross domestic product around its long-term growth trend. The length of a business cycle is the period of time containing a single boom and contraction in sequence.