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Business Economics Report (Doc)

   

Added on  2020-05-28

16 Pages1925 Words168 Views
Running head: BUSINESS ECONOMICSBusiness EconomicsName of the UniversityName of the studentAuthor Note
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1BUSINESS ECONOMICSExecutive Summary:Market equilibrium is a microeconomic phenomenon. Under market equilibrium, someeconomic forces remain equal. There are chiefly three types of market equilibrium. However,in this report, long-run stable equilibrium will be analysed. Moreover, economic condition ofU.S, Australia and China will also be discussed. To discuss the economic condition of thesethree countries, GDP growth rate, inflation rate and unemployment level will be analysed,based on previous year data. After analysing those economic conditions, it will be analysedthat whether the economy is stable or not.
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2BUSINESS ECONOMICSTable of ContentsIntroduction:...............................................................................................................................3Discussion:.................................................................................................................................3Country Analysis:.......................................................................................................................6United States:.........................................................................................................................6Australia:................................................................................................................................9China:...................................................................................................................................11Conclusion:..............................................................................................................................13References:...............................................................................................................................14
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3BUSINESS ECONOMICSIntroduction:Economic equilibrium means a market condition when aggregate demand andaggregate supply of an economy remain in balance. There are chiefly three types ofequilibrium condition can be seen in an economy. These are stable, unstable and neutralequilibrium condition (Chahrour & Gaballo, 2015). Stable equilibrium is a long-termconcept. On the other hand, unstable equilibrium is a short-run concept. In this report, a basicconcept of stable equilibrium condition will be discussed. After that, economic conditions ofUnited States, Australia and China will discussed. To analyse the equilibrium condition of acountry, some macroeconomic factors should be analysed to understand the situation. Thesemacroeconomic factors are gross domestic product (GDP), unemployment rate and inflationrate. Discussion:Stable market equilibrium is a long-run situation, where total demand and total supplyof a country equate with each other. Moreover, they always remain in balance. If any externalforce affects the demand side or supply side of this economy, an automatic mechanism willbe occur. Hence, the demand and supply side will be automatically reached to its initialequilibrium condition (Quadrini, 2015). Here, an equilibrium level of price and output will bedetermined. Under a stable market equilibrium condition, a downward slopping demandcurve and an upward rising supply curve will be drawn.
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