--%>

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 : Define consumer psychology and pricing

    Define the consumer psychology and pricing and affecting elements.

  • Q : Elasticity of Demand for Labor The

    The elasticity of demand for labor is directly associated to: (w) labor’s share of total costs. (x) the elasticity of demand for output. (y) the ease of substitution between labor and other resources. (z) All of the above.

    Q : Describe why firms may shut down

    If a perfectly competitive firm determines that its market price is below its minimum average variable cost, this will sell: w) the output where marginal revenue equivalents marginal cost. x) any positive output the entrepreneur decid

  • Q : Supplies of Labor within Competitive

    During a competitive resource market, every firm confronts a resource supply curve which is: (w) upwardly sloped. (x) backward bending. (y) perfectly inelastic. (z) perfectly elastic. I need a good

  • 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 : Illustrates the term Elasticity

    Illustrates the term Elasticity?

  • Q : Occurrence of production Production

    Production broadly happens while: (1) a corporation creates a profit. (2) weather disperses economic bads within the environment. (3) knowledge is used to direct energy to change materials and raise their value. (4) resources are combined within a bal

  • Q : Prevent cheating among members by

    A cartel tends to be more successful mainly while this can stop: (1) cheating between its members. (2) increases in the demand for its product. (3) joint profit maximization. (4) international trade. (5) an increase in the price of its product. <

  • Q : Substitution Consequence on Labor Supply

    The substitution consequence on labor supply decision of an individual is more powerful than the income effect while: (1) higher wage rates result within increased hours worked. (2) cuts in wage rates yield discouraged worker effects. (3) the supply c

  • Q : Physical Productivity of labor Labor’s

    Labor’s physical productivity based most directly on technology and the: (w) tastes and preferences of consumers. (x) transactions demand for money. (y) prices and availability of the other resources. (z) level of per capita income.