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    Human capital and the business cycle

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    How can fluctuations in the business cycle affect an organization? What is an example of how the US government has invested in human capital? How can that investment make an organization more productive?

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    The economies of most modern nations experience oscillations. During upswings, unemployment declines and companies operate near capacity. In down times, unemployment increases and companies operate well below capacity. These swings are largely a result of consumer demand. When consumers buy more, the economy grows; when they cut back, it shrinks.

    The business cycle as such isn't really a cycle in that there is no regularity to its timing. The periods of time between upswings and downturns are irregular. This makes it difficult for companies to plan far in advance. The demand for ...