What generally causes the business cycle? What are the four ...

[jerry coleman]

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]

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

[jerry coleman]

Excellent

[fatboyy09]

Thanks for the timely response, appreciate it