Fluctuations in employment and output result from changes in
A)aggregate demand only.
B)aggregate supply only.
C)aggregate demand and aggregate supply.
D)neither aggregate demand nor aggregate supply.

Question

Quizplus · Accepted Answer

Fluctuations in employment and output can result from changes in both aggregate demand and aggregate supply. Changes in aggregate demand, such as shifts in consumer spending or investment, can lead to changes in output and employment. Changes in aggregate supply, such as shifts in technology or availability of resources, can also affect output and employment levels. Therefore, the answer choice that best reflects this is C.

Fluctuations in Employment and Output Result from Changes in