Two Potential Problems with Macro Equilibrium Are

question 36

Multiple Choice

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.Macro equilibrium may be short-lived and may or may not occur at full employment and acceptable inflation levels.

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Definitions:

Protective Cushion

A safeguarding structure or material that mitigates impact or pressure, often found in biological contexts like the pads of tissue that protect underlying organs.

Elongated Fibers

Refers to cells that have been stretched or lengthened, often found in muscle and connective tissues.

Muscular Tissue

A tissue composed of fibers accountable for producing force and motion in the body, including movement of organs and the body itself.

Specialized to Contract

Describes cells or tissues, such as muscle cells, that are adapted to shorten or generate force, playing a crucial role in movement and support.