Tag: macroeconomic-equilibrium

1 page tagged macroeconomic-equilibrium.

Pages

Chapter 49: Macroeconomic Equilibrium — Economics 101

Macroeconomic equilibrium is where aggregate demand meets aggregate supply. Short-run equilibria can sit above or below the economy’s long-run potential — creating inflationary or recessionary gaps. Classical economists trust markets to close those gaps automatically; Keynesians don’t.