33
practice examMultiple Choice

Practice Exam

Question 33 • Personal Finance and Economics

What decisions does the business cycle help businesses make? Choose four correct answers.

Answer
A
whether to increase or decrease production
B
whether to hire or lay off workers
C
whether to invest or save money
D
whether to keep or change products
E
whether to grow or shrink the business
F
whether to stay at old facilities or move to new facilities

Explanation

The business cycle shows whether the economy is expanding or contracting, helping businesses plan for changing demand. During a downturn, a business may reduce production, save rather than invest, shrink operations, or lay off workers; during an expansion, it may do the opposite. Therefore, the relevant decisions are production, business size, investment or saving, and hiring or layoffs.

AI-written and checked against the verified answer.

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