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Equilibrium |
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Equilibrium1. A state of balance between offsetting forces for change, so that no change occurs. 2. In competitive markets, equality of supply and demand.EquilibriumThe stable state of the system. See: Attractor.Equilibrium Similar MatchesEquilibrium rate of interestEquilibrium rate of interestThe interest rate that clears the market. Also called the trade-clearing interest rate. Market equilibriumMarket equilibriumEquality of supply and demand. See equilibrium. General equilibriumGeneral equilibriumEquality of supply and demand in all markets of an economy simultaneously. The number of markets does not have to be large. The simplest Ricardian model has markets only for two goods and one factor, labor, but this is a general equilibrium model. Contrasts with partial equilibrium. Equilibrium exchange rateEquilibrium exchange rateExchange rate at which demand for a currency is equal to the supply of the currency in the economy. Two cone equilibriumTwo cone equilibriumA free-trade equilibrium in the Heckscher-Ohlin Model in which prices are such that all goods cannot be produced within a single country, and instead there are two diversification cones. This, or a multi-cone equilibrium, will arise if countries' factor endowments are sufficiently dissimilar compared to factor intensities of industries. Contrasts with one cone equilibrium. Further SuggestionsDisequilibriumEquilibrium position Partial equilibrium Equilibrium price Equilibrium level Computable general equilibrium Nash equilibrium One cone equilibrium Balance of payments equilibrium Multi-cone equilibrium |
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