Economic fluctuations and policy of Business economics

        Economic fluctuation are consider that fluctuations that occur at national level of income presenting the contraction or growth of the country. The market of the economy is not static. It is consider dynamic. Increase in national income means that the growth of economy is going to positive direction. And when the economy is contracting then the national income going to decrease. The business cycle explains the economic fluctuation.

        In other words, the economic fluctuation means that ups and downs appear in the level of rate of changes in the variable of economic goals like rate of unemployment, inflation rate and real national income.  The tools of stabilization policies are depend on the policy makers that determine the economic fluctuation and it include foreign exchange rate policy, monetary policy and fiscal policy.

        The business cycle includes a series of cycle that include the contraction and expansion of economics. So the discussion of all that factors that support the expansion of economic and also become the causes of contraction of economic are all observe in the business cycle. Exchange rate policy, fiscal policy and monetary policy all affect the business transaction at all levels because without money no any transaction going to be happen and these polices provide guideline to all the organizations that how the movement of money implemented within and outside the organization. The length of the business cycle id the time period that include the single boom and contraction in sequences. 

Growth and supply side policies of Business economics

        The supply side policies are micro economic policies that make the market and industries operations more effectively and also take part in faster underlying growth rate of real national output. In the private and public sector, the supply side policies are going to implemented. To achieve the growth rate the supply side policies are going to reform. The productive capacity of an economy is actually brought into play because they can happen at high level of aggregate demand. Successful policies effects are going to shift the curves of long run aggregate supply to right direction to increase the potential output. The improved supply side performance is the key achieving factors to sustain the growth without any rise in inflation.

        The few objectives of the supply side policies are improve the trend of growth rate of real GDP, encourage the start up and expansion of new business with export potentials, provide platform for sustained noninflationary growth, increasing the competition and stimulate a faster pace for innovation and invention to improve the competitiveness, increase the development and research spending and investment, increase labour and capital productivity, improve incentives to look for work and invest in the skills of people and increase the graphical mobility of labour to help reduce the unemployment rate. 

        The performance f the firm going to increase that brings competition and efficiency in the markets of productions. Government provides proper assistance to implement the supply side policies. Try to avoid the deregulation of production of goods to avoid barriers and bring a healthy environment in the business sector.