Variables affecting the business cycle include marketing, finances, competition and time.

• Finances. Sales growth is usually slow during the introductory stage of the business cycle because the consumer market needs time to learn about and consider buying the product.
• Marketing.
• Competition.
• Time.

  What are the elements of a business cycle?

  Business cycles are identified as having four distinct phases: expansion, peak, contraction, and trough. An expansion is characterized by increasing employment, economic growth, and upward pressure on prices.

  How are government measures used to control business cycle?

  The government takes fiscal and monetary measures to achieve desirable changes in the economic activities on aggregate level. When fiscal and monetary policies are used to control business cycle theses are then called counter cyclical policies.

  Why is it necessary to control business cycle?

  As the business cycles are of international in nature. Whenever a business cycle appears in a country, due to its trade relations with other countries, these usually spread to other countries. Therefore it is necessary to take measures on international level to control trade cycles.

  What are the measures used to control the trade cycle?

  The measures are: 1. Price Adjustment Policy 2. Price Control, Price Support and Rationing 3. Organisation and Management of the Labour Market. Measure to Control Trade Cycle # 1.

  How is monetary policy used to control business cycle fluctuations?

  Monetary policy as measure to control business cycle fluctuation refers to all those measures which are taken with a view to control money and credit supply in the country. When we are in the state of full employment and we are facing inflation, a deflationary policy may be adopted. The central bank can reduced the quantity of money in circulation.