Most Economists Agree That the Immediate Determinant of the Volume

question 118

Multiple Choice

Most economists agree that the immediate determinant of the volume of output and employment is the

• A) composition of consumer spending.
• B) ratio of public goods to private goods production.
• C) level of total spending.
• D) size of the labor force.

---

Definitions:

Temporary Tax Cut

A reduction in taxation rates or an increase in deductions that is implemented for a limited period of time to stimulate economic growth or provide relief during economic downturns.

Aggregate Demand

The holistic demand encompassing all goods and services in an economy, quantified at a set price level over a fixed time frame.

Permanent Income

The average annual income an individual expects to earn over their lifetime.

Fiscal Policy

A government's strategy for managing its budget, including taxation and spending decisions, to influence the economy.