Question

Which statements best describe how governments respond to changes in the business cycle? Check all that apply.
Governments make currency more available. Governments refuse to pass a budget. Governments change their policies. Governments reduce spending. Governments manipulate interest rates.

Answer 1

Hello there,

Which statements best describe how governments respond to changes in the business cycle? Check all that apply.  

Governments make currency more available.

Governments change their policies.

When governments encounter a business change, they clearly adjust their policies according to it. The reason is that the country's economy is basically based on the the kind of business activity they have going on in their country.

I hope the answer is helpful.

Thanks

Answer 2

Governments change their policies. – this is the right way to make the changes in business cycle because government can easily change their business policies according to the economic rate of the country.

Basically the economy stability of the country is based on the business that are conducting or investing money in the country.

So government can easily change their policies, but they cannot make currency more available because that will create inflation in the market.