Many economists believe that a change in the ______ is the immediate determinant of domestic output and employment, and thus turning points in the business cycle.
A) total spending of the nation
B) taxes levied on businesses and households
C) nation's supply of capital goods
D) net exports of goods and services

Question

Quizplus · Accepted Answer

Total spending in the nation, which encompasses consumer spending, investment spending, government spending, and net exports, directly affects the level of domestic output and employment. Changes in total spending can lead to expansions or contractions in the economy, marking the turning points in the business cycle.

Many Economists Believe That a Change in the ______ Is