Significant causes giving birth to business cycle
What are the significant causes of business cycle to give birth?
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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.
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If this firm maximizes profit, this will be producing under circumstances of: (1) increasing returns to labor. (2) economies of scale. (3) diminishing returns to labor. (4) constant returns to labor. (5) adverse selection and moral hazard. Discover Q & A Leading Solution Library Avail More Than 1412847 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads No hassle, Instant Access Start Discovering 18,76,764 1957743 Asked 3,689 Active Tutors 1412847 Questions Answered Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!! Submit Assignment
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