Most economists agree that the immediate cause of the majority of cyclical changes in the level of real output is unexpected changes in the:

Question

Quizplus · Accepted Answer

The level of total spending, or aggregate demand, is the main driver of cyclical changes in real output. Unexpected changes in aggregate demand can lead to increases or decreases in production, employment, and overall economic activity. Changes in unemployment, inflation, and stock market prices can be both a cause and a consequence of changes in aggregate demand, but they do not have as direct and immediate effect on real output.

Most Economists Agree That the Immediate Cause of the Majority