What is the primary reason that changes in total spending lead to cyclical changes in output and employment?
A) Government is unable to respond by changing the amount of money in circulation.
B) Changes in total spending cause supply shocks that cause cyclical variation.
C) Prices are sticky in the short run.
D) Prices are flexible in the long run.
Correct Answer:
Verified
Q3: In the United States, business cycles have
Q4: Which of the following statements is true
Q5: The production of durable goods varies more
Q6: The industries or sectors of the economy
Q7: As it relates to economic growth, the
Q9: In which of the following industries or
Q13: Which of the following is not seen
Q15: In which phase of the business cycle
Q18: The phase of the business cycle in
Q20: Most economists agree that the immediate determinant
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents