Aggregate private spending is unstable according to policy activists,primarily because

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Private residential and non-residential investment is often subject to fluctuations depending on economic conditions and external factors, such as interest rates and business confidence. This volatility can have a significant impact on aggregate private spending and contribute to instability. Consumer non-durable spending and the money supply can also be volatile, but they are not the primary reason for the instability in aggregate private spending according to policy activists. Government spending can be more stable than private spending due to budgetary controls and longer-term planning, so it is unlikely to be the main cause of instability in this context.

Aggregate Private Spending Is Unstable According to Policy Activists,primarily Because