Question

Which best describes how governments respond to changes in the business cycle?governments issue more currency.governments refuse to pass a budget.governments change their policies.governments reduce spending.

Answer 1

Answer:

governments change their policies.

Explanation:

Economic cycle is the name given the variations in the economy, which at some times become supercharged, with many transactions taking place, high GDP, increased employment and inflationary pressures, and in others it is in recession, when GDP decreases, economic activity slows down. and unemployment occurs. The government will make policy decisions according to the cycle scenario. In times of low production the government tends to take policies that stimulate the economy. In times of warming up, the government tends to take steps to calm the economy and control inflation.

Answer 2

I believe the answer is: Governments reduce spending.

When the government reduce its spending, the government would have more money in their budget to make various programs that can help the struggling economy. They could do this by providing incentives for the unemployed or providing loan programs for citizens who want to open a small business.