How does business confidence affect the economic cycle? And why?
If a business has low levels of confidence in the economy there will be lower levels of investment and so lower economic growth. This will likely result in economic recession where the economy contracts for two consecutive quarters.
Related Economics A Level answers
All answers ▸Explain using a diagram the price/output of a firm competing in a perfectly competitive market during the long run. Is this equilibrium point beneficial?
Explain how the energy companies have exploited their market power.
What are Economies of Scale?
What is the difference between factors that affect supply and the elasticity of supply?