Question

What are the four phases of the business cycle? How long do business cycles last? Why does the business cycle affect output and employment in capital goods industries and consumer durable goods industries more severely than in industries producing consumer nondurables?

Answer 1

Answer:

Following are the solution to this question:

Explanation:

All four stages of a traditional economic cycle starting mostly on the shorter part are recession, recovery, peak, and trough. Its average period ranges from 2 to 3 years to 15 years. The sales can be a delay as resources and lasting products last.

It might occur in predicted downturns. Consequently, in recessions, its capitals and renewable goods industries undergo significant decreases in output. Customers could not contrast defer their purchase of sustainable goods includes meat for long; recessions also are just marginally more productive than unsustainable.

In general, a substantial investment requires for purchases, and it is reduced to zero after the acquisition. Investment or lasting product expenditures often appear to also be "lumpy".