Abstract
The complete general equilibrium model comprises the equilibrium interrelationships among the four sectors, namely, labour market, product market, monetary sector and the expenditure sector. These interrelationships mean that in a state of general economic equilibrium, an equilibrium in any of these sectors will imply equilibrium in the other sectors as well. On the other hand, a disequilibrium in any one of the sectors will result in disequilibrium in all other sectors as well. Full-employment equilibrium will necessitate equilibrium in all the sectors simultaneously under conditions of optimal utilization of factors and resources of production.
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© 1999 Springer Science+Business Media New York
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Choudhury, M.A. (1999). The Complete General Equilibrium Model. In: Comparative Economic Theory Occidental and Islamic Perspectives. Springer, Boston, MA. https://doi.org/10.1007/978-1-4757-4814-7_18
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DOI: https://doi.org/10.1007/978-1-4757-4814-7_18
Publisher Name: Springer, Boston, MA
Print ISBN: 978-1-4419-5097-0
Online ISBN: 978-1-4757-4814-7
eBook Packages: Springer Book Archive