Question 8 • Personal Finance - EL3403
The business cycle shows whether the economy is expanding or contracting, which helps businesses plan their scale and finances. During a downturn, a business may shrink, reduce production, lay off workers, or save money; during an expansion, it may grow, increase production, hire workers, or invest. These correspond to whether to grow or shrink, change production, hire or lay off workers, and invest or save money.
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