In an attempt to understand an economy's periods of expansion and periods of contraction, economists analyze
A) demand and supply for a single good or service.
B) elasticity.
C) marginal cost and marginal revenue curves.
D) aggregate demand and aggregate supply.
E) the money supply.

Question

Quizplus · Accepted Answer

Economists analyze aggregate demand and aggregate supply to understand an economy's periods of expansion and contraction. This involves looking at the overall demand for goods and services in the economy and the total supply of these goods and services, which can help explain shifts in economic output, inflation, and employment levels.

In an Attempt to Understand an Economy's Periods of Expansion