Total spending influences the business cycle because:
A) increases in spending flow through to higher output, employment and income.
B) it allows GDP to increase well beyond the full-employment level of output.
C) decreases in spending will increase inflation, which then reduces real GDP.
D) increases in spending will decrease inflation, which then increases real GDP.
Correct Answer:
Verified
Q22: The business cycle occurs from:
A) changes in
Q23: If the GDP gap is zero, we
Q24: Over time, real GDP tends to:
A) fluctuate.
B)
Q25: A coincident indicator:
A) highlights future changes in
Q26: Which of the following is not a
Q28: The GDP gap is the difference between:
A)
Q29: The GDP gap is the difference between:
A)
Q30: The GDP gap measures:
A) the value of
Q31: The GDP gap is the difference between:
A)
Q32: The trough is the point:
A) at which
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