If consumers have less discretionary income to spend, how would this affect the business cycle?
a.Businesses may sell less items and reach a turning point in the business cycle.
b.Businesses may go into a recovery period.
c.Consumption of additional goods and services.
Answers:
A definitely.....as it would mean two other possibilities:
1)the economic boom has ended signalling the peak & end of a boom
2) or it worsens the recession until the real GDP is at it's lowest, then the government intervenes to end the economic downturn
A?
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