Cause-effect relationship among macroecomic variables

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Which of the following best describes the cause-effect relationship among macroecomic variables?

a. a decrease in total spending causes an increase in inventories, which causes a decrease in total output, which causes an increase in employment, which causes a decrease in national income

b. an increase in total spending causes a decrease in inventories, which causes an increase in total output, which causes an increase in employment, which causes an increase in national income

c. an increase in unemployment causes an increase in inventories, which causes an increase in total output, which causes an increase in total spending

d. an increase in employment causes an increase in inventories, which causes an increase in total output, which causes a decrease in total spending

e. an increase in the money supply causes a decrease in output, which causes an increase in inventories, which causes unemployment and total spending to rise.

Reference no: EM131166732

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