This paper introduces a general model of a closed economy in which the dynamic disequilibrium interactions among labor, goods and asset markets are explored. The model contains many existing partial models as special cases, and gives rise to a four-dimensional dynamical system in general. Special cases of this system are studied analytically with respect to local stability in dimension three and global stability in dimension two. Here, the destabilizing role of fast adaptive expectations and price adjustment speeds (via the Mundell effect and the Rose effect) and the globally stabilizing role of increasing wage flexibility (via smooth factor substitution) are of particular importance.