The basic factor causing changes in the level of economic activity is changes in the level of:
A) prices.
B) total spending.
C) unemployment.
D) business income.

Question

Quizplus · Accepted Answer

The primary factor that causes changes in the level of economic activity is changes in the level of total spending. This includes consumer spending, business investment, government spending, and net exports. Changes in total spending directly affect demand for goods and services, which in turn influences production, employment, and overall economic activity.

The Basic Factor Causing Changes in the Level of Economic