Economic instability has high economic and social costs.

The discomfort index is one measure of the economic costs of instability.

Which of the following is a social cost of economic instability?

a. wasted resources

c. economic growth

b. inflation

d. full employment

Full employment and economic growth are positive effects, so they would not be "a cost of economic instability" - we can reject this option.

The best answer is inflation - it's an economic cost and it has negative effects, such as increasing the prize of the goods faster than wages.