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Report on Concept of Stabilized Economic Equilibrium in Australian Economy

   

Added on  2020-06-06

6 Pages1361 Words40 Views
ECONOMICS
Report on Concept of Stabilized Economic Equilibrium in Australian Economy_1
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1Concept of stable economic equilibrium.....................................................................................1Application of stable economic equilibrium in Australian economy..........................................2Reasons behind the requirement of governmental intervention...................................................2Analysis of economic condition of Australia...............................................................................3CONCLUSION................................................................................................................................3REFERENCES................................................................................................................................4
Report on Concept of Stabilized Economic Equilibrium in Australian Economy_2
INTRODUCTIONEconomics refers to the study of production process, consumption pattern and wealthtransfer in a nation. In every economy, equilibrium point indicates the condition of balancedeconomic forces means equal demand and supply. The present report will thoroughly explain theconcept of stabilized economic equilibrium and assess its application on the Australian economyto determine that whether or not the situation exists in Australia. Besides this, it will demonstratethe need of governmental intervention in field of production decisions and income distribution.Lastly, economic health will be examined through different economic variables with the aim toadvice policy makers with different set of alternatives. Concept of stable economic equilibriumStable equilibrium in the economy is a state where two factors of market demand andsupply intersects each other (Balasko, 2016).Figure 1Stable equilibrium point(Source: Molaie and et.al. 2013)Observing illustration 1, equilibrium point is depicted by “E” where negatively slopeddemand curve(D) and positively sloped supply curve(S) cut each other. At this point, equilibriumprice stands at OP1 and demand & supply is OQ1. At the price P2, there is excessive supplywhereas below the EP, excessive demand exists in the market. This concept can be well1
Report on Concept of Stabilized Economic Equilibrium in Australian Economy_3

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