Macroeconomic balance

Equilibrium is considered one of the most important issues in economic policy and theory. Taking into account the theory of systems with the ability to function normally, stability is considered an equilibrium structure, the components of which do not interfere with each other and are in a balanced form. Systems are characterized by the presence of self-regulation mechanism. This function allows you to maintain and achieve balance. This mechanism is inherent in the national economy as an economic structure.

Macroeconomic balance is achieved by finding a choice that suits everyone. At the same time, the use of limited resources (capital, land, labor) for the production of different goods is balanced with their distribution among all members of society.

Macroeconomic balance is the proportionality and balance of the main economic parameters. Thus, a situation is formed in which the subjects of economic activity do not feel the incentive to change the existing situation. In other words, it means that proportionality has been achieved between consumption and production, resources and their application, production results and factors, financial and material-material flows, demand and supply .

Equilibrium in a market economy is characterized by the correspondence between demand and production. In such a situation, the product is produced as much as it can be purchased at a given cost. Such a balance can be achieved by limiting the need for any economic benefits (by lowering effective demand) or by increasing the optimization of the use of resources.

Proportionality is classified into several types.

Experts define a partial and general macroeconomic balance.

The second definition is understood to mean the interrelated balance of national markets. It means the proportionality of each individual market and, if possible, the maximum coincidence and implementation of economic plans of the subjects. In this case, complete satisfaction of economic entities is formed, which do not tend to change the level of supply or demand in order to improve their economic situation.

Partial balance determines the balance of individual markets that are part of the national economy.

Experts also determine the full macroeconomic balance. It is 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).

The balance is also divided into the ideal (theoretically desired) and the real.

The prerequisites for the formation of an ideal proportionality include perfect competition and the absence of side effects. Such a situation is possible provided that each participant of economic activity finds an object of consumption in the market, each entrepreneur is a factor of production. In fact, these conditions are violated. In practice, the goal is to achieve a balance of the real, which exists in the presence of external manifestations, imperfect competition and established on the basis of incomplete realization of the goals of all participants in the economic system.

Balancing 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 the external effect. If the mechanism of self-regulation does not work, then the balance is not stable.