In the absence of external shocks or government policy,an economy would
A)Still experience business cycle fluctuations because of internal market forces.
B)Not experience business cycle fluctuations.
C)Not be able to expand production and output.
D)None of the choices are correct.

Question

Quizplus · Accepted Answer

Even in the absence of external shocks or government policy, an economy would still experience business cycle fluctuations because of internal market forces such as changes in consumer and business confidence, changes in investment and spending patterns, and natural fluctuations in supply and demand. These internal market forces can lead to upswings and downswings in economic activity and fluctuations in output and employment levels.

In the Absence of External Shocks or Government Policy,an Economy