How ideas suitable to how society deals with business cycles


It is unfair, but true, that bad things happen. Unfortunately, when people expect bad things to happen, they often make choices in an attempt to prevent these bad things that may actually make things worse rather than better.

How might the above ideas be relevant to how society, both private and public sectors, deals with business cycles? (Consider how households, firms, and government react when statistical reports indicate the economy is expanding or contracting.)

Do you think business cycles would exist, or be as severe, if these economic statistics were not reported on a regular basis or at all? Why or why not?

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Microeconomics: How ideas suitable to how society deals with business cycles
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