Explain why there could be a conflict between external and internal balance.

External and internal balance are two key concepts in macroeconomics that represent different economic goals and conditions within an economy. While both are desirable, achieving them simultaneously can be challenging and can often lead to a conflict. Let's delve into the explanations for this conflict:

1. Definition of External and Internal Balance:
   - External Balance: External balance refers to a state in which a country's international trade is in equilibrium, meaning that it neither has a trade surplus nor a trade deficit. This implies that the current account of the balance of payments is stable, with exports matching imports.
   - Internal Balance: Internal balance is achieved when an economy operates at full employment or its natural rate of unemployment, and inflation is stable. In other words, internal balance ensures that the domestic economy is producing at its ____ _______ __________ ______ ___ ________ _____ ________ ______ _____ ___ ___.
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