The pattern of expansions and contractions in a nation's economic system is referred to as: A

Business Dec 23, 2020

The pattern of expansions and contractions in a nation's economic system is referred to as:

A. purchasing power parity

B. aggregate output

C. its balance of trade

D. productivity

E. the business cycle

Expert Solution

The answer is E. the business cycle...

The business cycle occurs primarily because of the changes in consumer and investor confidence. When things are going well, there can be a spike up in inflation or perhaps a natural disaster that will shake consumer confidence, and the unemployment level increases, and that sends the economy into a contraction.

Archived Solution

Unlocked Solution

You have full access to this solution. To save a copy with all formatting and attachments, use the button below.

Already a member? Sign In

Important Note: This solution is from our archive and has been purchased by others. Submitting it as-is may trigger plagiarism detection. Use it for reference only.

For ready-to-submit work, please order a fresh solution below.

Or get 100% fresh solution

Get Custom Quote