Economies MUST experience both booms and busts. All economists can do is work to limit the extent of the economic fluctuations.

Question

Quizplus · Accepted Answer

It is true that economies experience both booms and busts due to various factors such as changes in supply and demand, government policies, natural disasters, and global events. Economists cannot completely prevent these fluctuations but they can implement measures to mitigate the adverse effects and stabilize the economy. For example, central banks can use monetary policies such as adjusting interest rates and controlling the money supply to regulate economic growth and avoid inflation or recession.

Economies MUST Experience Both Booms and Busts