From the mainstream perspective, instability in the economy is due to
A)price flexibility and shocks to either aggregate demand or aggregate supply.
B)price stickiness and shocks to either aggregate demand or aggregate supply.
C)price flexibility and government policies and regulation.
D)price stickiness and government policies and regulation.

Question

Quizplus · Accepted Answer

Mainstream economics often attributes economic instability to price stickiness, which prevents prices from adjusting quickly to changes in demand or supply, combined with shocks to aggregate demand or supply.

From the Mainstream Perspective, Instability in the Economy Is Due