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Stable Equilibrium in the Economy in Microecconomy

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Added on  2020-04-01

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ECONOMICS FOR BUSINESS ECONOMICS FOR BUSINESS 8 ECONOMICS FOR BUSINESS Name of the Student Name of the University Authors Note Introduction 2 Analysis 2 Stable equilibrium in economy 2 Determining whether stable equilibrium exists in the Australian economy 5 Conclusion 8 References 9 Introduction The aim of this paper is to discuss about the stable equilibrium in the economy in both microeconomic and macroeconomic concept. The current equilibrium in the Australian economy reflects that the market equilibrium occurs at the intersection point between the demand curve (DD)

Stable Equilibrium in the Economy in Microecconomy

   Added on 2020-04-01

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Running head: ECONOMICS FOR BUSINESSECONOMICS FOR BUSINESSName of the StudentName of the UniversityAuthors Note
Stable Equilibrium in the Economy in Microecconomy_1
1ECONOMICS FOR BUSINESSTable of ContentsIntroduction......................................................................................................................................2Analysis...........................................................................................................................................2Stable equilibrium in economy....................................................................................................2Determining whether stable equilibrium exists in the Australian economy................................5Conclusion.......................................................................................................................................8References........................................................................................................................................9
Stable Equilibrium in the Economy in Microecconomy_2
2ECONOMICS FOR BUSINESSIntroductionThe aim of this paper is to discuss about the stable equilibrium in the economy in bothmicroeconomic and macroeconomic concept. Equilibrium is termed as stable if the returns to theinitial equilibrium position through process of counteracting forces as it are deviated fromequilibrium point due to external disturbances. According to the stable equilibrium of Marshall,disturbance in equilibrium quantity occurs. On the other hand, disturbance in equilibrium priceoccurs in Walrasian stable equilibrium concept (Dierker, 2012). In both circumstances, theposition of equilibrium is restored. The paper also highlights on the determination of existence ofstable equilibrium in the Australian economy. The study also recognizes the necessity ofgovernment intervention when external shocks deviates the economy from stable equilibriumposition.AnalysisStable equilibrium in economyStability in economic equilibrium can be explained by both macroeconomic andmicroeconomic stability. Microeconomic stability in the economy is discussed with the help ofmarket equilibrium shown in the figure below.
Stable Equilibrium in the Economy in Microecconomy_3

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