Question

20. Some believe that the business cycle should be regulated by

government policy and others think it should just go with the flow. Which
of these do you think is better? Explain.

Answer 1

I think following the market flow is better.

Step-by-step explanation:

Business cycle refers to the period when the economy are experiencing a series of expansion (a general improvement ) and contraction (A general decline)

If the government determine this cycle, it will be difficult for businesses to follow the demand that exist in the market. This might caused many of the products produced by the businesses to be left unsold.

If we follow the market flow, Businesses can adjust their expansion or contraction based on the amount of demand that they have in the market.