According to mainstream macroeconomists, U.S. macro instability has resulted from
A) investment "booms" and "busts" and, occasionally, adverse aggregate supply shocks.
B) adherence by the Fed to a monetary rule.
C) government's attempts to balance its budget.
D) wide ﬂuctuations in net exports.

Question

Quizplus · Accepted Answer

Mainstream macroeconomists attribute U.S. macro instability to investment "booms" and "busts," which lead to economic cycles. Additionally, adverse aggregate supply shocks, such as a sudden increase in oil prices, can cause macro instability in the short term.

According to Mainstream Macroeconomists, U