Which of the following is a potential problem at macro equilibrium?
A)It is inconsistent with the macroeconomic goals.
B)A surplus of goods exists.
C)A shortage of goods exists.
D)The economy is permanently stuck there.

Question

Quizplus · Accepted Answer

Although macro equilibrium represents a balance between aggregate demand and aggregate supply, it may not necessarily achieve the macroeconomic goals such as low unemployment, stable prices, and economic growth. Thus, macro equilibrium may be inconsistent with these goals, making it a potential problem. B and C are not potential problems at macro equilibrium as there is no surplus or shortage of goods at equilibrium. D is also not a potential problem as economies may move in and out of macro equilibrium over time.

Which of the Following Is a Potential Problem at Macro