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A government can implement ways to minimize the business cycle. One way in which this is achieved is to minimize the scope of variations in economic growth.

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Q: A government can try to minimize business cycles by?
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Why does the US government track and influence business cycles?

To try and prevent another Great Depression. They try to keep an equilibrium going between the ups and downs of the economy.


What are business cycles and what role do the Federal Reserve and Federal Government have in trying to control them?

Answer It is very important that you understand that the Federal Reserve is not a government institution. It does not take its orders from the federal government. Yes, they put their hand in and try to change the course of the U.S. Economy, but you have to ask yourself, Who are they? What are they trying to do? Who are they trying to help when they do it? Answer Business cycles are the ups and downs in business as defined by a time span. This span could be days, weeks, months, years, decades, even centuries. Generally, the cycle depends on the type of business. For instance, construction business usually slows dramatically in the winter months, as it is not practical to build things while it is snowing and cold. Also, financial markets undergo some turmoil around tax season as people try to settle their accounts for their taxes. One can measure the overall economy as having cycles of growth and slow down by the GDP or some other economic indicator.There are many schools of thought on how the Government (including the Fed) should use this information. Some say that the government should just let the cycles happen as they may, keeping their hands off (laisse-faire). Others go to the other extreme, saying that government should control the cycles completely. Most economics fall in the middle, opting for an indirect approach, saying that the business cycles simple should be "smoothed out."One could easily see why the dips in business activity would want to be smoothed out and how the gov't would do that (lowering interest rates and taxes, etc). But why would the gov't want the economic booms to be not as boomful? The answer is because during times of hightened business activity, there is a huge risk of demand-pull inflation. The gov't then wants to raise interest rates and taxes so that the economy doesn't get "too hot" and cause this problem.


How does business influence government in Australia?

Business attempts to keep the government in Australia from over regulating it. They also attempt to keep taxation of profits to a minimum and they try to influence labor laws to maximize workforce efficiency.


Why do producers try to minimize costs and maximize revenue?

The profit motive


What identifies the reason why producers try to minimize costs and maximize revenue?

The profit Motive

Related questions

How can a government try to minimize business cycles?

Governments try to control this cycle to prevent crashes from happening in the economy. They can do this by promoting the growth of businesses during the expansionary phase of the cycle.


Why does the US government track and influence business cycles?

To try and prevent another Great Depression. They try to keep an equilibrium going between the ups and downs of the economy.


What are business cycles and what role do the Federal Reserve and Federal Government have in trying to control them?

Answer It is very important that you understand that the Federal Reserve is not a government institution. It does not take its orders from the federal government. Yes, they put their hand in and try to change the course of the U.S. Economy, but you have to ask yourself, Who are they? What are they trying to do? Who are they trying to help when they do it? Answer Business cycles are the ups and downs in business as defined by a time span. This span could be days, weeks, months, years, decades, even centuries. Generally, the cycle depends on the type of business. For instance, construction business usually slows dramatically in the winter months, as it is not practical to build things while it is snowing and cold. Also, financial markets undergo some turmoil around tax season as people try to settle their accounts for their taxes. One can measure the overall economy as having cycles of growth and slow down by the GDP or some other economic indicator.There are many schools of thought on how the Government (including the Fed) should use this information. Some say that the government should just let the cycles happen as they may, keeping their hands off (laisse-faire). Others go to the other extreme, saying that government should control the cycles completely. Most economics fall in the middle, opting for an indirect approach, saying that the business cycles simple should be "smoothed out."One could easily see why the dips in business activity would want to be smoothed out and how the gov't would do that (lowering interest rates and taxes, etc). But why would the gov't want the economic booms to be not as boomful? The answer is because during times of hightened business activity, there is a huge risk of demand-pull inflation. The gov't then wants to raise interest rates and taxes so that the economy doesn't get "too hot" and cause this problem.


Where to apply for a small business loan?

Try a local bank that is an SBA ( Small Business Administration) lender. Also try for the government loans for the country in which you live. You can also apply online with the nbfc


How do small business obtain help from the government to fund Reserch Development.?

Normally through Government or Private Industry research grants. Try Grants.gov, or the SBA (Small Business Administration.) Good luck!


How do you minimize food and beverage cost?

Try coupons. They work.


Which chemicals are used for making money?

That is dirty business. Dont try unless you are authorized by the government of your contry.


How does business influence government in Australia?

Business attempts to keep the government in Australia from over regulating it. They also attempt to keep taxation of profits to a minimum and they try to influence labor laws to maximize workforce efficiency.


How does Environmentalist measure damage to the environment and try to minimize it?

how do i know!? i was asking you


Why do producers try to minimize costs and maximize revenue?

The profit motive


How you managed to minimize wastage?

try to reuse ice cream containers etc...


Whats a good start to inquiring about a good business grant?

Try checking with your local government offices. They generally have information regarding business grants and will be able to provide you with the applications.