The primary cause of changes in the level of economic activity is changes in:
A) total spending.
B) imports and exports.
C) government tax and expenditure policies.
D) none of the above.

Question

Quizplus · Accepted Answer

Changes in total spending directly affect the level of economic activity. When total spending increases, businesses respond by producing more goods and services, which can lead to economic growth. Conversely, a decrease in total spending can lead to a reduction in economic activity.

The Primary Cause of Changes in the Level of Economic