Question

What do most economists believe about the future of business cycles?

Answer 1

C is the correct answer

Answer 2

The correct answer is C) Business cycles will grow more extreme, with higher peaks and deeper troughs.

Most economists believe about the future of business cycles that Business cycles will grow more extreme, with higher peaks and deeper troughs.

Globalization has many advantages but also has risks in an interconnected global world that depends so much on one economy over the other. Economists predict that business cycles will be more extreme and this is going to affect many countries in global markets that are so connected. The peaks and lows that are being predicted will affect the economies of these countries. That is why we see that markets volatilities hit hard in some economies that are more vulnerable. We see how bad days in one stock market affect other markets. If the US stock market has a bad day, it impacts Asian markets in China or Japan.