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
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.
