The most important determinant of an economy's levels of total output, employment, and income is:
A) total spending.
B) the level of prices.
C) the balance of trade.
D) congressional policies for domestic programs.

Question

Quizplus · Accepted Answer

Total spending, encompassing consumer spending, investment by businesses, and government expenditures, is the primary driver of an economy's output, employment, and income levels. This is because the aggregate demand, which is essentially total spending, directly influences the production levels of goods and services, thereby affecting employment and income.

The Most Important Determinant of an Economy's Levels of Total