major causes of business cycle?
Answers
Answer:
Internal Causes of Business Cycles
1] Changes in Demand. Keynes economists believe that a change in demand causes a change in the economic activities. When...
2] Fluctuations in Investments. Just as fluctuations in demand, fluctuations in investment is one of the main causes of...
3] Macroeconomic Policies. The monetary policies and the economic policies of a nation will also result in changes in...
4] Supply of Money. There is another belief that says that business cycles are purely monetary phenomena. So changes in...
Explanation:
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The business cycle is caused by the forces of supply and demand—the movement of the gross domestic product GDP—the availability of capital, and expectations about the future. This cycle is generally separated into four distinct segments, expansion, peak, contraction, and trough.