Why does a business cycle serve as a forecasting model.?
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Answer:
Business managers rely on economic forecasts, using them as a guide to plan future operating activities. ... Understanding what the future holds is also important for government officials, helping them to determine which fiscal and monetary policies to implement.
The business cycle is a pattern of economic booms and busts exhibited by the modern economy. Business cycles are important because they can affect profitability, which ultimately determines whether a business succeeds.
Answer:
Business managers rely on economic forecasts, using them as a guide to plan future operating activities. ... Understanding what the future holds is also important for government officials, helping them to determine which fiscal and monetary policies to implement.