[1] A simple example is the reaction of the US Federal Reserve to raise interest rates when the dollar performs too well against other currencies such as the euro and the yen.
Since currency exchanges are often predilated on the results of economic changes such as quarterly profit results, Federal Reserve must be cautious not to overreact or such fiscal changes will actually exacerbate the situation by making investment in America more attractive than equalizing exchange rates.
Job markets are, by nature, cyclical, with upswings in certain sectors such as retail near year's end, and in construction during the spring and summer.
Similar to a man walking across a swaying tightrope, any economic model subject to cyclical stressors must find a balance.
[5] In economics, particularly with fiscal policy, poorly chosen compensating actions can result in multiple CAs, spiralling out of control into depression.