The mainstream view is that macro instability is caused by the volatility of the money supply, which
constantly shifts the aggregate demand curve around.

Question

Quizplus · Accepted Answer

The mainstream view, particularly among Keynesian economists, is that macroeconomic instability can be caused by various factors, not just the volatility of the money supply. These include changes in investment, government policy, external shocks, and consumer confidence, which can all shift the aggregate demand curve.

The Mainstream View Is That Macro Instability Is Caused by the Volatility