Q. Illustrate the the advertising effects on Business Cycle?
Effect on Business Cycle: - Supporters of advertising quarrel that advertising help in reducing the extent of business-cycles. In period of market crises advertisers increase their ad-expenditure to revert their falling sales. In boom period advertisers limit to ad expenses they are able to sell their entire production with less advertising efforts. Critics dispute that advertisers overspend in boom period and under spend in recession-period as amount of ad-expenditure is usually based on %age of sales.