Better Business, 5/e

Objective 2-5 Government and the Economy

1. Describe the four stages of the business cycle, and explain how the government uses both fiscal policy and monetary policy to control swings in the business cycle.

Source: Andy Dean/Fotolia

Nick and Jacinta Robertson have been saving for years to buy their first house. Over the past several years, the interest rates banks charge for home loans have been at historically low levels. Recently, however, all Nick and Jacinta hear about is news of the rapid changes in the stock market, reports from ...