0
Why is it favorable to select a fiscal year that ends when the normal operating cycle is at its lowest point?
Wiki User
∙ 11y agoWant this question answered?
Be notified when an answer is posted
Add your answer:
Earn +20 pts
How is politics important to economics?
Politics affects economics in terms of what policy to pursue (such as monetary or fiscal policy)... should taxes be raised? should the government spend more on social welfare programs? should we restrict big businesses (many businesses are financial contributers to political parties... both conservative and liberal)? And of course through the rumored "political business cycle" which supposedly is when incumbent politicians take actions (when they are up for re-election) that makes favorable (but very short-term) economic standing. After elections, the economic policies supposedly return to normal (taxes go back up etc.)...
By what economic activity is the normal business cycle punctuated?
From its highest point, prosperity, to its lowest point, trough, these phases are marked by increases and decreases in GDP, unemployment, demand for goods and services, and spending.
Measures to control of business cycles?
Business cycles can be controlled by appropriate fiscal policy and monetary policy. When the economy enters the recessionary phase, government spending should be increased (fiscal policy measure). This includes infrastructure projects, subsidies to productive sectors, etc. When infrastructure projects are undertaken, there is requirement of labor (when roads are built, construction labor is required), which leads to employment. Also supplies of cement, iron, steel, etc is required. The production of these commodities increase. People start earning wages. They earn, and so they consume more. As a result of which economy enters into expansion phase. Thanks to subsidies, cost of production goes down. The producers can offer products at lower cost. When the economy enters expansionary phase which is above the normal growth path, monetary measures by Central banks are effective. The central bank tries to reduce the money in circulation with its open market operations and by increasing Reserve requirements. Basically contractionary monetary or fiscal measures are used to deal with high growth and inflation, while expansionary monetary or fiscal policy for recession.
How do seasonal variations and long-run trends complicate measurement of the business cycle?
There is a pre-Christmas spurt in production and sales and a January slackening. This normal seasonal variation does not signal boom or recession. From decade to decade, the long-term trend (the secular trend) of the U.S. economy has been upward. A period of no GDP growth thus does not mean all is normal, but that the economy is operating below its trend growth of output.
Can one normal good be a substitute for another normal good?
yes
What is the normal operating temperature of an engine?
the normal operating temperature for cars is around 190 degrees.
What is the operating temperature of a Cavalier Z24?
what is normal operating temp.
What type of account is Unearned revenue and what its normal balance?
Unearned revenue is a liability account. It is revenue that is received in one fiscal period despite the fact that revenue is not earned until another fiscal period. Its normal balance is credit.
What is normal operating temp for 1997 trans am?
About 200 degrees is normal
What is the normal operating temperature for a 1998 aurora with the 4.0 engine?
200 To 210 Normal Operating Temperature For All The Auroras 1995 To 1999
Normal operating temp for a 98 Durango 5.2?
Normal around 210
What is the normal operating terature on a1997 blazer?
From 195 to 210 degrees is normal.
Can performing a pressure check for leaks in coolant system cause a crack in my radiator pleas help?
No, the system is only checked at normal operating pressure.No, the system is only checked at normal operating pressure.
What hydrocarbons has the lowest normal boiling point?
Pentene
What are normal trade relations in economic?
a treaty to create favorable trade terms between two nations
What is the lowest number you can get when two dice are rolled?
The lowest number will be obtained by getting lowest number on both of the dice if its a 6 sided dice (normal kind) then the lowest will be 2
What is the normal operating temperature of opel vectra?
80C
