The Mainstream View of Macro Instability Is That

question 252

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.

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Definitions:

Adequate Records

A system of keeping accurate and complete financial records that comply with legal and regulatory standards.

Independent Reviews

An evaluation or assessment conducted by individuals or entities not affiliated with the organization being reviewed to ensure objectivity and impartiality.

Technology

Technology encompasses the collection of tools, machines, techniques, and methods that facilitate the production of goods, provision of services, and solving of problems to fulfill human needs and improve quality of life.

Processing Errors

Mistakes that occur during the processing of data, transactions, or operational tasks, which can lead to inaccurate results or outputs.