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General equilibrium |
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General 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.Similar MatchesBalance of payments equilibriumBalance of payments equilibriumMeaningful only under a pegged exchange rate, this referred to equality of credits and debits in the balance of payments using the traditional definition of the capital account. A surplus or deficit implied changing official reserves, so that something would ultimately have to change. Equilibrium levelEquilibrium levelThe value taken on by an economic variable in equilibrium, as opposed either to some other value, or to its rate of change. Market equilibriumMarket equilibriumEquality of supply and demand. See equilibrium. Multi-cone equilibriumMulti-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 multiple diversification cones. This, or a two cone equilibrium, will arise if countries' factor endowments are sufficiently dissimilar compared to factor intensities of industries. Contrasts with one cone equilibrium. Equilibrium priceEquilibrium priceThe price when the supply of goods matches demand. Further SuggestionsEquilibrium exchange rateEquilibrium position Equilibrium Two cone equilibrium Disequilibrium Equilibrium rate of interest Partial equilibrium One cone equilibrium Computable general equilibrium Nash equilibrium Equilibrium |
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