In the mainstream view, one major source of instability in the macro economy is the volatility of:
A) Product prices
B) Investment spending
C) Consumer spending
D) Labor wages

Question

Quizplus · Accepted Answer

Investment spending is considered a major source of instability in the macro economy because it can be highly unpredictable and can fluctuate rapidly based on various factors such as changes in interest rates, market confidence, and government policies. When investment spending becomes highly volatile, it can lead to wider economic instability, such as recession or inflation. The other options, while important, do not have the same level of impact on macroeconomic stability as investment spending. Product prices, consumer spending, and labor wages can all fluctuate, but they typically do not have the same level of impact on the overall health of the economy.

In the Mainstream View, One Major Source of Instability in the Macro