Question

Why is the free enterprise system subject to business cycles? A. because individuals and businesses acting in their own self-interest make economic decisions B. because of minor fluctuations such as the day-to-day fluctuations of the stock market C. because the desire for a higher standard of living than that of the previous generation becomes harder to reach D. because the government plays a role in making decisions about factors such as prices, production, and consumption

Answer 1

because economic decisions about factors such as prices, production, and consumption are determined by the market

Step-by-step explanation:

In free enterprise systems, the government may regulate economic behavior, but the market determines the factors that drive periods of economic expansion and contraction.

Answer 2

The answer is: B- because of minor fluctuations such as the day-to-day fluctuations of the stock market.