Question

Business cycles occur as a result of supply and demand shocks that are caused by I. irregular innovation II. changes in productivity III. political events IV. changes in the money supply

Answer 1

All the listed options are correct and contribute towards business cycle movements.

Business cycles are also referred to as economic cycles and are mainly visible through GDP fluctuations, inflation, interest rate fluctuations, exchange rate changes and even the growth rate.

There are several stages in a cycle, they are,

BOOM, PEAK, RECESSION, DEPRESSION, TROUGH and RECOVERY.

Step-by-step explanation:

Answer 2

The correct answers are numbers (I), (II), (III), and (IV).

Step-by-step explanation:

Business cycles are the ups and downs of the overall economy. Those fluctuations are caused by "shocks" that are the result of the slow periods coming after irregular innovations, increases or decreases in productivity levels, increase or decrease of money supply, and major political events like war.