Question

What are 3 negative effects of business cycles?

Answer 1

These are the answers I came up with:
The business cycle is irregular- economic activity constantly fluctuates with time, due to changes in aggregate demand and aggregate supply- that is why we may have severe troughs and inclined peaks.
The business cycle has a long duration period (and is ongoing), in Australia one lasted for 52 months.
The business cycle must be stabilized by fiscal and monetary policy by the government and the RBA to insure economic activity progresses with the growth trend- that is to ensure the economy in the future keeps expanding.
Hope that helped!