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Business Economics Assignment: Market Equilibrium

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Added on  2020-05-28

Business Economics Assignment: Market Equilibrium

   Added on 2020-05-28

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Running head: BUSINESS ECONOMICSBusiness EconomicsName of the UniversityName of the StudentAuthor Note
Business Economics Assignment: Market Equilibrium_1
1BUSINESS ECONOMICSExecutive Summary:Market equilibrium is a basic microeconomic concept. In this situation, total demand andtotal supply of a country equate with each other. However, under macroeconomic concept, acountry’s gross domestic product (GDP), unemployment rate and inflation rate are takenunder consideration to analyse the market condition of a country. By analysing those factors,it can be seen that the country is either is stable position or not. In this report, the marketcondition of U.S, Australia and China are taken to discuss.
Business Economics Assignment: Market Equilibrium_2
2BUSINESS ECONOMICSTable of ContentsIntroduction:...............................................................................................................................3Analysis:.....................................................................................................................................3Theory:...................................................................................................................................3Stability under Macroeconomic concept:...............................................................................5Detailed Discussion:...............................................................................................................5U.S.A......................................................................................................................................5Australia:................................................................................................................................8China:...................................................................................................................................11Conclusion:..............................................................................................................................14Reference:................................................................................................................................15
Business Economics Assignment: Market Equilibrium_3
3BUSINESS ECONOMICSIntroduction:Economic equilibrium is a situation, where aggregate market demand and aggregatemarket supply equate with each other. However, this equilibrium situation can be stable orunstable. In this report, the concept of stable equilibrium will be discussed. Moreover, thereare some external factors, which can influence this equilibrium condition of a country. Theseare labour employment, entire price level, consumer preferences, inflation rate and someother external forces (Emerson & McGough, 2018). However, under a stable equilibriumcondition, no external factors can change this equilibrium condition. Hence, each countrywants to attain this stable equilibrium condition. In this report, the economic condition ofUnited States, Australia and China will be analysed. Some real statistical data of these threecountries will be given to understand the actual market condition. Moreover, it will beanalysed that whether the economic condition of each country is in equilibrium or not. Toanalyse this report, a proper economic theory based ton aggregate demand and aggregatesupply will be considered. After analysing this whole topic, a conclusion will be drawn basedon those analyses. Analysis:Theory:Market equilibrium is an important concept of economics. Under stable marketequilibrium, aggregate supply and aggregate demand of a country will remain in balance.Moreover, an equilibrium output and an equilibrium price level will be obtained. Under astable market condition, this equilibrium price level and output level will always remain fixed(Brekke, Golombek, Kaut, Kittelsen & Wallace, 2017). If any external forces change theseequilibrium positions, the market will automatically adjust itself. Hence, the initial
Business Economics Assignment: Market Equilibrium_4

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