Equilibrium is considered one of the most important issues in economic policy and theory. Taking into account the provisions of the theory of systems with the ability to function normally, stability is considered an equilibrium structure whose components do not interfere with each other and are in a balanced form. Systems are characterized by the presence of a mechanism of self-regulation. This function allows you to maintain and achieve balance. This mechanism is inherent in the national economy as an economic structure.
Macroeconomic equilibrium is achieved by finding a choice that suits everyone. Moreover, the use of limited resources (capital, land, labor) for the production of various goods is balanced with their distribution among all members of society.
Macroeconomic equilibrium is the proportionality and balance of the main economic parameters. Thus, a situation is formed in which business entities do not feel incentives to change the existing situation. In other words, this means that proportionality has been achieved between consumption and production, resources and their use, production results and factors, financial and material-material flows, demand and supply .
The equilibrium in a market economy is characterized by the correspondence between demand and production. In such a situation, as much product is produced as it can be purchased at a given cost. Such a balance can be achieved by limiting the needs for any economic benefits (lowering effective demand) or by increasing the optimization of the use of resources.
Proportionality is classified into several types.
Specialists determine the partial and general macroeconomic equilibrium.
The second definition refers to the interconnected balance of national markets. This refers to the proportionality of each individual market and, if possible, the maximum coincidence and implementation of the economic plans of the subjects. In this case, the complete satisfaction of business entities that do not seek to change the level of supply or demand in order to improve their economic situation is formed.
Partial balance determines the balance of individual markets that are part of the structure of the national economy.
Specialists also determine the complete macroeconomic equilibrium. It represents the optimal proportionality of the entire structure of the economy. This situation is not achievable in reality, but it is considered the ideal goal of all economic activity.
Macroeconomic equilibrium can be long-term and short-term (current).
Balance is also divided into ideal (theoretically desired) and real.
The prerequisites for the formation of ideal proportionality include perfect competition and the absence of side effects. This situation is possible provided that each participant in the economic activity finds a commodity in the market, each entrepreneur - a production factor. In fact, these conditions are violated. In practice, the goal is to achieve a real balance, which exists in the presence of external manifestations, imperfect competition and established on the basis of incomplete implementation of the goals of all participants in the economic system.
Balance can also be unstable and sustainable. Stability characterizes such proportionality in which the economy is able to independently return to its original position in response to an external effect. If the self-regulation mechanism does not work, then the balance is not stable.