Economic activity is subject to fluctuations (booms and slumps). Which of the following statements is correct for the US economy, considering the entire period from 1870-2015?Select one:a.Economic fluctuations have been reduced by automatic stabilizers as the size of government has increasedb.The main cause of economic fluctuations over this period has been the size of the agricultural sector and the effects of weather.c.Economic fluctuations have increased due to the speed with which money moves around the world in recent yearsd.Bank failures and financial crises were the main causes of economic fluctuations.

"Business cycle measures the fluctuations in the economy over time." "Automatic stabilisers…

Answered: Economic activity is subject to…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Economic activity is subject to fluctuations (booms and slumps). Which of the following statements is correct for the US economy, considering the entire period from 1870-2015?

Select one:

Economic fluctuations have been reduced by automatic stabilizers as the size of government has increased

The main cause of economic fluctuations over this period has been the size of the agricultural sector and the effects of weather.

Economic fluctuations have increased due to the speed with which money moves around the world in recent years

Bank failures and financial crises were the main causes of economic fluctuations.

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