Regarding the issue of economic stability, nonactivists believe that
A) consumption is highly unstable over the business cycle.
B) the highest possible level of investment must be maintained over all phases of the business cycle.
C) minor economic disturbances often feed on themselves, leading to severe swings in the business cycle.
D) the self-correcting properties of a market economy work reasonably well.

Question

Quizplus · Accepted Answer

Nonactivists believe that the self-correcting properties of a market economy work reasonably well, meaning that the market can adjust itself back to equilibrium after minor disturbances, and therefore, government intervention is not necessary for maintaining economic stability.

Regarding the Issue of Economic Stability, Nonactivists Believe That