The assignment explores the concept of macroeconomic equilibrium, highlighting its role in stimulating economic growth. Expansionary monetary policy can increase aggregate demand by reducing interest rates or purchasing government securities and bonds, thereby boosting consumption and investments. Conversely, contractionary instruments can be employed when the economy is overheating. The Australian economy's ability to adjust quickly to external shocks demonstrates its stable equilibrium. Additionally, the use of fiscal and monetary policies can help the economy achieve macroeconomic equilibrium.