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There is often a limiting factor that stops a business from achieving its objectives to the maximum extent. In most instances the limiting factor is:
Aggregate Supply
The total supply of goods and services available to a particular market from producers at different price levels.
Discretionary Policy
A policy where government entities, like central banks or governments themselves, decide on actions or measures to take based on current economic conditions.
Self-corrective Forces
Mechanisms within the market economy that work to naturally correct imbalances and return the economy to a state of equilibrium without external intervention.
Rational Expectations
The hypothesis that individuals form forecasts about the future based on all available information in a way that is consistent with the actual structure of the economy.
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