Craig and Kris were walking directly toward each other in a congested store aisle. Craig moved to his left to avoid Kris, and at the same time Kris moved to his right to avoid Craig. They bumped into each other. a. This example illustrates the concept of coordination failure . b. This idea relates to macroeconomic instability because the economy multiple choice 2 experiences inflation because there is a lack of coordination of the actions of people and businesses. experiences business cycles. does not achieve a mutually beneficial equilibrium because there is a lack of coordination of the actions of people and businesses. falls into recession because there is a lack of coordination of the actions of people and businesses.

does not achieve a mutually beneficial equilibrium because there is a lack of coordination of the actions of people and businesses

Explanation:

From the question, we are informed about Craig and Kris who were walking directly toward each other in a congested store aisle. Craig moved to his left to avoid Kris, and at the same time Kris moved to his right to avoid Craig. They bumped into each other. This example illustrates the concept of coordination failure and in this case, This idea relates to macroeconomic instability because the economy does not achieve a mutually beneficial equilibrium because there is a lack of coordination of the actions of people and businesses. Coordination failure can be regarded as failure that takes place as a result of group of firms want to achieve a more desirable equilibrium, but resulted to failure as a result of their decision making not been coordinated

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