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Changes in the business cycle may occur for a variety of reasons, but we're going to discuss four main ones right here.
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The first of which are business decisions.
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And business decisions influence the business cycle in the sense that businesses impact aggregate supply.
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And if businesses choose to supply more, we're going to see an increase in this business cycle.
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Maybe they're choosing to supply more because of some new technology that's been created.
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So they're just now able to supply more.
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Or maybe something else happens.
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They make a bad business decision.
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They go down the wrong path and all of a sudden, aggregate supply is going to decrease and we're going to see that business cycle impacted by that reduction in aggregate supply.
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Another trigger for changes in the business cycle could be changes in interest rates.
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And interest rates influence the business cycle because they influence spending and investment.
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What we're currently seeing right now in our economy is really low interest rates, record low interest rates, in fact.
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And so people are actually choosing to spend quite a lot.
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They are investing quite a lot...
