7.30
                                                                 may discourage investments thereby
        conclusIon                                               reducing growth in the long-term.
     Business cycles are basically fluctuations in the      (ii) A lack of the creative destruction (i.e.
     production levels of economies above and below              innovation) may put the economy
     the trend of the equilibirium levels.87 But why             in a slump or slowdown in its overall
     do economies fluctuate? There are many factors              production.
     which are said to be responsible for it, as per the   (iii) Anti-inflationary government policies
     experts:                                                    (especially when general elections are
           (i) Economic instability and uncertainty              nearing ) may direct the attraction of
                (due to logical or illogical expectations)       investors in the economy.
                                                           (iv) Unforseen disasters may cause economies
       87.    Cox, Simon, op. cit., p. 58.
                                                                 to fluctuate.