Most economists agree that the immediate cause of most of the changes in the level of real output in the economy is unexpected changes in: (a) the price level (b) the level of total spending (c) the full employment-unemployment rate (d) the buying and selling of stocks in the stock market

Business Dec 23, 2020

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

(a) the price level

(b) the level of total spending

(d) the buying and selling of stocks in the stock market

Expert Solution

The correct option is (b). The level of total spending.

The changes in the real output level in the economy are related to the cyclical change in the business cycle of a nation, which is directly related to the unexpected changes in the total spending level of a nation.

Archived Solution

Unlocked Solution

You have full access to this solution. To save a copy with all formatting and attachments, use the button below.

Already a member? Sign In

Important Note: This solution is from our archive and has been purchased by others. Submitting it as-is may trigger plagiarism detection. Use it for reference only.

For ready-to-submit work, please order a fresh solution below.

Or get 100% fresh solution

Get Custom Quote