As witnessed by several years of US recession business perfo

As witnessed by several years of US recession, business performance is greatly determined by the business cycle. What are some of the key factors used in evaluation of the current stage of the economy in business cycle? Which of these factors will you say has been the most impactful on businesses in the past 10 years?

Solution

Factors such as gross domestic product (GDP), interest rates, government spending, fluctuations in the economy, levels of employment and consumer spending, confidence and optimism of the investors are used to evaluate the current stage of the economy in the business cycle.

The confidence and optimism of the consumer has been the most impactful on businesses in the past 10 years.