The Complete General Equilibrium Model

  • Masudul Alam Choudhury
Chapter

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.

Keywords

Price Level Aggregate Demand General Equilibrium Model Aggregate Supply Aggregate Production Function 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer Science+Business Media New York 1999

Authors and Affiliations

  • Masudul Alam Choudhury

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