0
There is equilibrium in a closed economy (that which doesn't encourage in international trade), when there is the circular flow of income between House-holds & firms, where the house-holds own the factors of production, which is given to firms, which in return gives factors of income for their services. the firm uses fatcors of production to produce goods & services, whereas house-holds consume goods & services using factors of production. Here NI=NO=NE.
Wiki User
∙ 12y ago
Add your answer:
Earn +20 pts
In a market economy income is primarily determined by?
the quantities and prices of the resources that households supply.
What is the Circular flow of national income in four sector economy?
The economy is no longer closed and all other assumptions hold.
What is equilibrium output?
It is the output of an economy that equates aggregate supply with aggregate demand.
What are the determinants of induced consumption in Keynesian model of a closed economy with a government sector?
Income and taxes
How do you calculate the equilibrium level of consumption?
you first have to culculate equilibrium level of income.
In a market economy income is primarily determined by?
the quantities and prices of the resources that households supply.
What is the Circular flow of national income in four sector economy?
The economy is no longer closed and all other assumptions hold.
What is equilibrium output?
It is the output of an economy that equates aggregate supply with aggregate demand.
What are the determinants of induced consumption in Keynesian model of a closed economy with a government sector?
Income and taxes
How do you calculate the equilibrium level of consumption?
you first have to culculate equilibrium level of income.
What is the equilibrium theory and what are its potential effects on disadvantaged Americans?
The Equilibrium Theory is an explanation of the behavior of supply, demand, and prices in a whole economy. The theory has negative effects on disadvantaged Americans. As the price of products naturally move toward the equilibrium based on the supply and demand, low-income families cannot afford the products.
Equilibrium national income?
Equilibrium level of income is solved by following a system of equations. For a detailed understanding, study the Law of Mass Action of chemical reactions.
Income consumption curve?
income consumption curve is the collection of points of the consumer's equilibrium resulting from varying income.....
Types of equilibrium in economics?
stable and unstable <..........................................> Abeer Aamir Equilibrium is the state of balance between forces, influences. Any economy where equilibrium condition prevails is said to be prosperous. The state of equilibrium is found in several aspects of economics. Market Equilibrium Competitive Market Equilibrium General Equilibrium Lindahl Equilibrium Partial Equilibrium Market Equilibrium: In this situation, goods produced are equal to the goods consumed. Competitive Market Equilibrium: CME includes a sector of policies and allocation is done in such a way that each traders maximises his profit function. General Equilibrium: General equilibrium is the study of Supply and demand prices. Lindahl Equilibrium: In this situation, individuals have to pay for any public good according to the marginal benefits they can draw from the public goods. Partial Equilibrium: PE is a state in an economy where market is cleared of some specific goods. The market clearance is obtained when the price of all substitutes and complements as well as income levels of the consumers are in variable.
What are the factors affecting demand for travel?
Disposable Income. income Economy uncertainty in economy inflation Climate
What is the Definition of equilibrium income?
Equilibrium income exists when the supply of a good balances the demand of the good. This state prevents the fluctuation of price based on too little or too much supply on-hand.
Do income statement accounts closed at the end of the period?
yes, all accounts must be closed at the end of the period on the income statement
