Let's say you're in the manufacturing business. You're running factories at full capacity, acquiring more and hiring all the workers you can find because the level of consumer demand is high. Your costs are high, but profits are high too. There's no problem. But then one day consumers reduce their buying levels. At first, you can't believe it's true and you do nothing. After all, consumers will return to their old buying ways, right? Not so, it develops. After a while it becomes clear what ...
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