2. Why is the traditional term ‘business cycles’ a misnomer? How does your answer relate to the ease or difficulty of forecasting peaks and troughs? LO 6.1 MEDIUM 3. Which firm is likely to see its profits reduced the most in a recession: a car manufacturer, a manufacturer of boots and shoes, or a building maintenance service? Which is likely to see its profits reduced the least? Explain. LO 6.4 MEDIUM