The critical issue for macro stability is whether spending injections will actually equal spending leakages at full employment.
Otherwise there is too little or too much spending,which results in an inflationary or recessionary GDP gap.

Question

Quizplus · Accepted Answer

This is true because if spending injections do not equal spending leakages at full employment, then the economy will experience inflation or recession due to either too much or too little spending. This is the core concept of macroeconomic stability.

The Critical Issue for Macro Stability Is Whether Spending Injections