Final answer:
The economy can be affected by government spending on public services and incentives, birthrate impacting labor supply for economic growth, unemployment rates affecting consumer spending and economic cycles, and consumer demand that dictates business production and aggregate demand.
All the options mentioned here that affect the economy.
Step-by-step explanation:
Several factors can influence the economy, including government spendings such as public services and economic incentives, which are pivotal in setting the pace for the economy. The birthrate affects labor availability and consequently economic growth, especially when we consider the per capita metrics for assessing GDP and standards of living. Unemployment rates impact aggregate demand as it relates to consumer spending and can indicate either economic expansion or contraction. Finally, consumer demand determines the level of production required from businesses, influencing aggregate demand and thereby affecting economic cycles.
It's important to note that changes in population influence long-term GDP by potentially altering per capita income, which can indicate a cycle of economic growth or recession. Moreover, taxation plays a crucial role by affecting aggregate spending and therefore can either stimulate or dampen economic activity, depending on whether tax rates are increased or decreased. Government spending, on the other hand, supports public goods and services that contribute to overall economic welfare and productivity.