what actions might be taken by businesses and government in each phases of the business cycle

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26-09-2017
Business

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what actions might be taken by businesses and government in each phases of the business cycle

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Jasoncookies23 Jasoncookies23 · Answer 1 · 2017-09-26T00:26:15+02:00

The business cycle is the periodic but irregular up-and-down movement in economic activity, measured by fluctuations in real gross domestic product (GDP) and other macroeconomic variables. A business cycle is typically characterized by four phases—recession, recovery, growth, and decline—that repeat themselves over time. Economists note, however, that complete business cycles vary in length. The duration of business cycles can be anywhere from about two to twelve years, with most cycles averaging six years in length. Some business analysts use the business cycle model and terminology to study and explain fluctuations in business inventory and other individual elements of corporate operations. But the term "business cycle" is still primarily associated with larger (industry-wide, regional, national, or even international) business trends.

PiaDeveau PiaDeveau · Answer 2 · 2021-10-08T11:48:54+02:00

Stabilization of the Business Cycle Governments and corporations have different policies at different stages of the business process.

To regulate the short-term swings of the economic cycle, the government has the power instruments at its disposal: fiscal policy and monetary and fiscal policy.

Adjustments in the budget shortfall are referred to as fiscal policy. The Central Reserve's monetary policy relates to adjustments in short-term bond yields.

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