The idea that an economy can get stuck in either an unemployment equilibrium or an inflation equilibrium is most closely associated with
A)new classical economics.
B)the real-business-cycle theory.
C)monetarism.
D)the idea of coordination failures.

Question

Quizplus · Accepted Answer

The concept of an economy being stuck in an unemployment or inflation equilibrium is related to coordination failures, where individual agents' inability to coordinate their actions leads to suboptimal outcomes.

The Idea That an Economy Can Get Stuck in Either