Question

what are the consequences of a business cycle and how can these consequences be mitigated?

Answer 1

The consequences of business cycle is the over all uncertainty over a period of time. And the most uncertain element here is job. At the expansion period, business rises, employment increases and also the output. But peak period is the end of it and in the recession period people start to loose their jobs. and then comes the period of recovery in which jobs again reopens. To mitigate these consequences, one must develop some personal skills to employ himself at the time of need and could balance out the losses and also generate demand bringing back the economic balance.