Question

2. Discuss How Does Economy Change with the Change of Seasons – provide at least three

Answer 1

There are periodic flutuations in economic activity and various economic variables like unemployment and inflation due to change of seasons. These are basically periodic fluctuations and follow a consistent pattern every year. They are explained below:

1.)Reduction in industrial activities of construction and mining in monsoon season. It is difficult to pursue these activities because they require a dry season to thrive. If a country's industrial sector includes these activities then that sector is bound to suffer in the monsoon season.

2.)Retail inventories rise during Christmas season as the producers prepare for holiday shoppers.

3.)In the summer season, farm and fishing activity rises. People prefer to go and spend time outdoors.