What is macroeconomic equilibrium?

We speak of macroeconomic equilibrium to refer to the situation of equality between the aggregate supply (that is, the level of production of a country) and the aggregate demand (the set of public and private consumption) that exists in the same economic system. This concept is essential to understand the field of study of the macroeconomía, since it refers to the ideal situation in the economy of a specific country.

Types of macroeconomic equilibrium

Broadly speaking, we can identify two different kinds of macroeconomic equilibrium. Both can be studied and represented graphically through the aggregate supply and demand model (that is, the OA-DA model).

  • The short-run macroeconomic equilibrium, which occurs when the quantity demanded of Start real is equal to the quantity supplied of it.
  • The long-term macroeconomic equilibrium, which occurs when the offer added it reflects potential production (that is, what would be expected in the short term).

How is macroeconomic equilibrium achieved?

For the desired macroeconomic balance to take place, the country should use all its productive factors efficiently. What does this mean? That under no circumstances should there be unemployment situations, there should be uncultivated lands or unexploited factories. This idyllic situation between the level of production and the level of consumption is, as you may have already imagined, difficult to achieve. However, a series of measures can always be taken to achieve macroeconomic balance at the business level:

  • Know in depth the fixed costs and variable costs of the company's production.
  • Knowing contribution margin; that is, the difference between variable costs and the sale price of the final product.
  • Calculate the sales margin objectively and taking into account the prevailing socioeconomic context.
  • Ensure the good financial management of the company, without taking hasty decisions.

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