Business fluctuations

Question

Quizplus · Accepted Answer

Business fluctuations can have an impact on both inflation and unemployment. For example, during a recession, there is often a decrease in demand for goods and services, which can lead to lower prices (deflation) and an increase in unemployment as businesses lay off workers. Conversely, during an economic boom, there can be an increase in demand for goods and services, leading to rising prices (inflation) and a decrease in unemployment as businesses hire more workers.

Business Fluctuations