What decisions does the business cycle help businesses make?
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Inflation can result from rising demand and reduces the value of money. Deflation can result from falling demand and boosts the value of money.
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recession
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- whether to grow or shrink the business- whether to increase or decrease production- whether to hire or lay off workers- whether to invest or save money
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- Demand steadily rises.- Prices continue to increase.- The economy grows in a healthy way.
Q.8.
How do consumers' feelings about the economy help contribute to growth?
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No, a depression is indicated when the recession is exceptionally long.