Economic activity is subject to fluctuations booms and...

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 1800-2010? Question 5 options: The main cause of economic fluctuations over the years has been the size of the agricultural sector and the effects of weather. The main cause of economic fluctuations over the years has been the speculative nature of the financial system. In the early nineteenth century the effects of weather on a large agricultural sector were a major source of economic fluctuations but during the twentieth century these have been replaced by fluctuations in industrial investment. In the nineteenth century, bank failures (and the absence of a central bank) were the main causes of economic fluctuations.

Transcript

00:01 Hi.

00:02 So if you were to, you know, google your question, like, why do you, why do economic fluctuations happen? or why do they really happen between those dates, which was, you know, industrial revolution, world war ii, cold war, the american hegonomy and, like, world economy that really happened, globalization, supermass globalization.

00:26 That's really what happened.

00:27 And so, you know, economies fluctuate, expansion is, contractions.

00:32 It wasn't just like, you know, just expanding constantly.

00:36 There were some moments of contraction.

00:37 Like world war i was a moment of contraction for the economy at least.

00:42 Levels of employment, productivity, the total demand and for supply of the nation's goods and services.

00:47 It's about changes in demand, which happens with globalization.

00:51 Fluxuations and investment, it happens with globalization, macroeconomic policies.

00:54 Macro -economic means more worldwide, governmental level of things.

00:58 Supply of money, that happens dramatically, especially like i said, like to 2015, like the amount of stuff we have online now that the money supply is ridiculous because it's all just digital at this point.

01:11 And then like natural factors are kind of down there, but more technology war, but supply of money is a big one.

01:18 Okay, so let's look at our answer choice.

01:20 All right, economic activity subject to fluctuations, booms and slums, which is the following statements is correct for the u .s.

01:25 Economy considering the entire period 1870, 2015, select one.

01:29 Economic fluctuations have been reduced by automatic stabilizers as the size of government increased? no, that's not true.

01:36 The size of government is actually kind of decreased...