Author Question: What generally causes the business cycle? What are the four phases of a single business cycle? What ... (Read 278 times)

jerry coleman · **on:** Jun 30, 2018

What generally causes the business cycle? What are the four phases of a single business cycle? What are the problems associated with the business cycle?

Question 2

Which of the following is not an automatic stabilizer?
a. Personal income tax revenue.
b. Corporate income tax revenue.
c. Unemployment compensation benefits.
d. Property tax revenue.

6ana001 · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

Changes in total spending (aggregate demand) are what generally cause changes in the business cycle. The four phases of a single business cycle is a peak, recession, trough and an expansion. The problems associated with a recession are cyclical unemployment and slow growth. The problem with an expanding economy is (demand-pull) inflation.

Answer to Question 2

d