Force Field Analysis Suggests That Any Stable Situation Can Be

question 16

True/False

Force field analysis suggests that any stable situation can be considered to be in a state of equilibrium resulting from a balance of driving and following forces that are constantly supporting each other.

---

Definitions:

Classical Range

In economics, the range in which output and employment grow at their natural rate, and prices are stable.

Aggregate Supply Curve

A graphical representation showing the total quantity of goods and services that producers in an economy are willing and able to supply at various price levels.

Keynesian Region

An economic concept from Keynesian theory suggesting ranges of output levels where total spending is sensitive to changes in the level of income, affecting unemployment levels.

Classical Theory

An economic theory emphasizing free markets, competition, and the idea that supply and demand will naturally regulate the economy.