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

Macro equilibrium is a state where aggregate demand is equal to aggregate supply. However, this may not necessarily be consistent with other macroeconomic goals such as full employment, stable prices, and sustainable economic growth. Therefore, A is the potential problem at macro equilibrium. B and C cannot be potential problems because if there is a surplus or shortage of goods, then the market is not in equilibrium. D is not a potential problem because macro equilibrium is a temporary state that can be disturbed by changes in aggregate demand or supply.

Which of the Following Is a Potential Problem at Macro