The idea of coordination failures suggests the possibility of less than desirable price-level and real-
output equilibriums in the economy.

Question

Quizplus · Accepted Answer

Coordination failures occur when agents in the economy are unable to coordinate their actions effectively, resulting in suboptimal outcomes for both price-level and real-output equilibriums. This means that less than desirable equilibriums can occur due to coordination problems.

The Idea of Coordination Failures Suggests the Possibility of Less