The major determinant of the total volume of output in an economy is the
Answer Details
The major determinant of the total volume of output in an economy is the level of total expenditure.
When consumers, businesses, and the government spend more money on goods and services, this creates a demand for those goods and services, and producers respond by increasing their output to meet that demand. This, in turn, leads to an increase in the total volume of output in the economy.
The composition of consumer spending and the number of farmers or the size of the labor force may also affect the economy, but they are not the primary determinants of the total volume of output. The composition of consumer spending may affect the types of goods and services that are produced, but the overall level of expenditure is what drives the volume of output. The number of farmers or the size of the labor force may impact the supply side of the economy, but it is the demand side that determines the overall level of output.