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8 February, 13:08

Which of the following is an economic cost of instability?

a. increase in unemployment

c. decrease in family values

b. increase in crime

d. decrease in the price level

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Answers (1)
  1. 8 February, 16:04
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    An economic cost of instability would be increase in unemployment - a.

    Having a very volatile (instable) market can create problems which make it more unsure how people would be able to keep a job for a longer time-frame. When a market is volatile, this essentially means that a lot of changes can happen very fast - making it unstable for people and their jobs.
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