Most economists today recognize that a short-run macro failure is possible.
In the short run,the macro equilibrium could be below the full-employment level of output.

Question

Quizplus · Accepted Answer

This statement is true. Short-run macroeconomic failure can occur when the economy is experiencing a recession or other downturn that causes output levels to fall below the full-employment level. This can happen due to a variety of factors, including changes in consumer and business spending, shifts in international trade patterns, or changes in government policies. Most economists recognize this possibility and work to develop policies that can help stabilize the economy and support full employment.

Most Economists Today Recognize That a Short-Run Macro Failure Is