Question
Which is an exogenous factor that affects the business cycle?
Responses
natural disasters
natural disasters
the level of unemployment
the level of unemployment
the law of supply and demand
the law of supply and demand
fiscal and monetary policy
Responses
natural disasters
natural disasters
the level of unemployment
the level of unemployment
the law of supply and demand
the law of supply and demand
fiscal and monetary policy
Answers
GPT-4o mini
An exogenous factor that affects the business cycle is **natural disasters**. Exogenous factors are those that originate outside the economic system and can have significant impacts on the economy, such as natural disasters, which can disrupt production, supply chains, and overall economic activity.
The other options, like the level of unemployment, the law of supply and demand, and fiscal and monetary policy, are generally considered endogenous factors that arise from within the economy itself.
The other options, like the level of unemployment, the law of supply and demand, and fiscal and monetary policy, are generally considered endogenous factors that arise from within the economy itself.