Two potential problems with macro equilibrium are
A)Undesirability and instability.
B)The profit effect and the real balance effect.
C)External shocks and policy levers.
D)Multiple shifts to AS and AD.

Question

Quizplus · Accepted Answer

Macro equilibrium can be undesirable because it may not represent the best possible outcome for society. For example, the equilibrium may result in high levels of unemployment or inequality. Additionally, macro equilibrium can be unstable because it is vulnerable to external shocks or fluctuations in aggregate demand or supply.

Two Potential Problems with Macro Equilibrium Are