--%>
Assignment Help - homework help

Significant causes giving birth to business cycle

What are the significant causes of business cycle to give birth?

E

Expert

Verified

Significant causes giving birth to business cycle may be summarized as given below:

• Seasonal fluctuations

• Under consumption or excessive saving

• Dealings of entrepreneurs

• Monetary disequilibrium

• Change in the volume of investment or decrease in the marginal efficiency of capital

• Lack of adjustment between demand and supply

• Innovation

• Expansion of loans and contraction of loans by banks.

   Related Questions in Managerial Economics

  • Q : Average rate of return in Human Capital

    This illustrated graph indicates that, there on average, rate of return to education is greatest for finishing the previous year of: (1) kindergarten, at point a. (2) grade school, at point b. (3) high school, at point c. (4) undergraduate college, at

    		•
  • Q : Purely competitive labor market is

    When this purely competitive labor market is firstly in equilibrium at D0L, S0L, a move to equilibrium at D1L, S0L would be inconsistent along with increases in: (w) the price of output. (x) labor productivi

    		•
  • Q : Marginal Product of Labor Diminishing

    Diminishing returns to labor or questions of monitoring and coordination start to overwhelm any gains by specialization and division of labor within this graph at: (1) point a. (2) point b. (3) point c. (4) point d (5) point e.

  • Q : Explain the accounting cost concept in

    Explain the accounting cost concept in brief.

    		•
  • Q : Different between Expert opinion and

    Illustrates the different between expert opinion method and trend projection method?

    		•
  • Q : Income and Substitution Effects When

    When the income effect of a higher wage rate is extremely powerful in that case the substitution effect, the: (1) supply curve of labor will be positively sloped. (2) demand for leisure increases like income rises. (3) human capital effect is stronger

    		•
  • Q : Explain about perfectly price elastic

    I have a problem on perfectly price elastic supply curve that is given below: A perfectly price elastic supply curve is: (w) vertical. (x) horizontal. (y) positively sloped. (z) negatively sloped.

    Q : Demand demand has three

    demand has three essentials-damand+purchasing power+.???

    		•
  • Q : Illustrates definition and meaning of

    Illustrates the definition and meaning of managerial economics?

    		•
  • Q : Trade types of cycle distinguished by

    What are the trade types of cycle distinguished by Schumpeter?

    		•