Question

One way to stop inflation in the 1970s was to?
A) Take more money out of the economy
B) Cut back on things like oil and conserve energy
C) Put more money into the economy and encourage spending to boom the free market.
D) Bailout companies who are declaring bankruptcy.

Answer 1

Answer:

The boom and bust cycle is a process of economic expansion and contraction that occurs repeatedly. The boom and bust cycle is a key characteristic of capitalist economies and is sometimes synonymous with the business cycle.

During the boom the economy grows, jobs are plentiful and the market brings high returns to investors. In the subsequent bust the economy shrinks, people lose their jobs and investors lose money. Boom-bust cycles last for varying lengths of time; they also vary in severity.