Question

In a _______________ a deviation from equilibrium brings into market forces in operation which resort equilibrium.

• A. stable equilibrium
• B. unstable equilibrium
• C. temporary equilibrium
• D. short run equilibrium

Answer 1

Answer: (A)

stable equilibrium

In a stable equilibrium a deviation from equilibrium brings into market forces in operation which resort equilibrium. Equilibrium is a state of balance where aggregate demand = aggregate supply. Stable equilibrium means the equilibrium which does not change and even if it does it gets back to normal(equilibrium).