The Mainstream View of Macro Instability Is That

question 169

Multiple Choice

The mainstream view of macro instability is that

• A)changes in the money supply directly cause changes in aggregate demand and thus cause changes in real GDP.
• B)changes in investment shift the aggregate demand curve and thus cause changes in real GDP.
• C)bursts of innovation put the economy on an unsustainable growth path, eventually producing recession.
• D)changes in technology and resource availability are the two main sources of fluctuations of real GDP.