Understanding the business cycle is important for business managers because ........

Economics- Phase (I & II) Business Cycles

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Understanding the business cycle is important for business managers because _____

they affect the demand for their products

they affect their profits

to frame appropriate policies and forward planning

all the above

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Explanation:

business cycles are marked by the alternation of the phases of expansion and contraction in aggregate economic activity, and the comovement among economic variables in each phase of the cycle. Aggregate economic activity is represented by not only real (i.e., inflation-adjusted) GDP—a measure of aggregate output—but also the aggregate measures of industrial production, employment, income, and sales, which are the key coincident economic indicators used for the official determination of U.S. business cycle peak and trough dates.