Define Equilibrium as the Term Is Used in Macroeconomics

question 49

Essay

Define equilibrium as the term is used in macroeconomics. Draw a graph to show an economy is in equilibrium. Then illustrate and explain how an inflationary gap and a deflationary gap can occur.

---

Definitions:

Communitarianism

A philosophical and social ideology that emphasizes the importance of community in the functioning of political life, over the interests of the individual.

Group Values

The shared beliefs, norms, and standards that guide the behavior and decision-making process within a group.

Collective Responsibility

The concept that all members of a group, community, or society are responsible for actions taken by any member of that group, implying a shared accountability for outcomes.

Idioculture

The customs, practices, and values expressed in a particular place by the people who interact there.