This report delves into the concept of stable economic equilibrium, defining it as a state where economic variables are balanced and recover quickly from external shocks. It employs the Keynesian cross model to illustrate macroeconomic equilibrium, where aggregate expenditure matches the real Gross Domestic Product. The paper further explores stabilization policies, including fiscal and monetary instruments, used by governments to manage economic fluctuations, such as expansionary policies during recessions and contractionary policies during inflationary periods. The analysis extends to the Australian economy, assessing its stability based on recent economic data, particularly the changes in inventory levels. The report concludes that the Australian economy demonstrates characteristics of a stable equilibrium, showcasing its ability to adjust to external shocks. The paper references several economic models and economic reports published by the Australian Bureau of Statistics.