Total spending on newly produced goods and services:
A) is the main force determining the economy's levels of output, employment, and income.
B) will have a dampening effect on the economy when it falls, and an expansionary effect when it increases.
C) is made up of the combined spending of all households, businesses, government units and foreign buyers in the economy.
D) all of the above.

Question

Quizplus · Accepted Answer

All the statements are correct regarding the total spending on newly produced goods and services. It is a primary determinant of the economy's output, employment, and income levels (A), has a dampening effect when it falls and an expansionary effect when it increases (B), and comprises the spending of households, businesses, government units, and foreign buyers (C).

Total Spending on Newly Produced Goods and Services