Multiple Choice
Which of the following statements is FALSE?
A) Changes in real GDP can cause changes in an economy's level of employment.
B) The U.S. economy tends to operate at a particular level of output for a long period of time.
C) The general level of prices in an economy can be affected as output expands toward full employment.
D) The level of activity in a market economy is always going through periods of expansion and contraction.
Correct Answer:

Verified
Correct Answer:
Verified
Q6: Government intervention during the recovery phase of
Q7: The multiplier effect is equal to:<br>A) .<br><img
Q8: The main determinant of total household spending
Q9: If 20 percent of additional income is
Q10: If government purchases increased by $60 billion
Q12: Businesses will undertake more investment spending at
Q13: Considering only household saving and business investment
Q14: A business cycle is:<br>A) a recurring period
Q15: The main determinant of an economy's level
Q16: Spending from borrowing, and saving from income