Equilibrium is used mostly by economists in order to explain rational market behavior: buyers and sellers continually purchase and sell goods until a point is reached where the market price is set so that the demand from consumers, and the supply from suppliers, is exactly equal. This naturally ...
If an economy is in short-run equilibrium that is below potential, what forces will bring the economy to long-run equilibrium? What is the initial point of the long-run macroeconomic equilibrium? What are the equilibrium values? What does...
How much of economics deals with equilibrium behaviors and how much deals with the processes by which equilibrium is achieved? What is the condition of equilibrium in macroeconomics? How can an economy adjust back to equilibrium? What shocks can change macroeconomic equilibrium? Defin...
The interesting part about thermal equilibrium is that we want to avoid it when it comes to insulating buildings. That's why we install insulation materials, so that our house doesn't become hot in the summer and cold in the winter. This is probably one of the few equilibrium that we don...
What Is a Disaster? An Economic Point of ViewNatural disasterEconomic costEconomic modelsDisaster risk managementThis chapter focuses on the economic consequences of a disaster and discusses the definition of the "economic cost" of a disaster. It stresses that a natural disaster is not a natural ...
What is the definition of market equilibrium?Essentially, this is the point wherequantity demandedandquantity suppliedis equal at a given time and price. There is no surplus or shortage in this situation and the market would be considered stable. In other words, consumers are willing and able ...
Understanding unique equilibrium is crucial for analyzing and predicting outcomes in economic models and strategic interactions. For further exploration, topics such as general equilibrium theory, Nash equilibrium, and stability analysis provide deeper insights into the conditions and implications of unique eq...
“Equilibrium is a state of balance in an economy, and can be applied in a number of contexts. In micro-economics, market equilibrium price is the price that equates demand and supply.” “In macro-economics, national income is in equilibrium when aggregate demand (AD) equals aggregate suppl...
The virtue of the golden mean is a perfect state of equilibrium!—The Analects of Confucius. Zhongyong,the golden mean is an interesting topic.In Confucianism(儒家思想),it is seen as an important virtue(品德).Confucius speaks highly of it.However,it is easily misunderstood.People often think ...
The concept of economic stimulus is associated with 20th century economistJohn Maynard Keynes. A recession, according to Keynesian economics, is a deficiency ofaggregate demandwhere the economy will not self-correct. Instead, it reaches a new equilibrium with higherunemployment, lower output, and slow...