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:

Market Savvy

A leader’s ability to be accountable for the products and services they deliver in a local market.