Question

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

1.Governments make currency more available.

2.Governments refuse to pass a budget.

3.Governments change their policies.

4.Governments reduce spending.

5.Governments manipulate interest rates.

Answer 1

I took the test on e.d.g.e.n.u.i.t.y (wouldn't let me write it as an actual word) and I got a 96%, for this question I put all of them, but it is possible this is the 1 question I got wrong, but I said all of them and got a 96% so whether you wanna trust my answer or not, your choice. good luck!

Answer 2

The correct answer is 2 and 5.

(i) Government refuses to pass budget.

(ii) Government manipulates interest rates.

Another name for business cycle is economic cycle. The upward and downward movement which is of gross domestic product.

We measure business cycle by way of considering growth rate of real gross which is of domestic product.