Question

Which statements best describe how governments respond to changes in the business cycle? Check all that apply. Governments make currency more available. Governments refuse to pass a budget. Governments change their policies. Governments reduce spending. Governments manipulate interest rates.

Answer 1

governments make currency more available.

Governments change their policies

Government reduce spending.

Governments manipulate interest rates.

Answer 2

The correct answers are A) governments refuse to pass a budget and E) governments manipulate interest rates.  

The statements that best describe how governments respond to changes in the business cycle are: governments refuse to pass a budget and E) governments manipulate interest rates.  

This business cycle refers to the ups and downs in the production of goods and services in the economy of a country. The general measure of these ups and downs is the Gross Domestic Product (GDP) of the country. The business cycle graph shows the ups and downs or more formally known, the expansions and contractions of the economy. During these cycles, governments respond to changes in that governments refuse to pass budget and governments manipulate interest rates.