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Internal or external cause of business cycle

Economics

Global epidemic like corona virus causes business cycle. Is it external or internal cause of business cycle? Explain.

Hari Krishna

CA Foundation

★ 1K+

05-Jun-20 13:14

374

Answers (2)

Best Answer

The outbreak of Corona virus has no less effect than any war situation in terms of people death, scarce resources, fall in income, and other such contraction. So considering all these factors, it can be treated as an External cause of business cycle.