Business cycle turning points are
A) unaffected by, and unrelated to the multiplier.
B) easy to predict.
C) brought about by changes in autonomous expenditures that are then subject to the multiplier effect.
D) None of the above is correct.

Question

Quizplus · Accepted Answer

Business cycle turning points are influenced by changes in autonomous expenditures, such as investment, government spending, and exports. These changes can then be amplified by the multiplier effect, which describes how an initial change in spending leads to further rounds of spending, ultimately having a larger impact on the overall economy.

Business Cycle Turning Points Are