General Equilibrium Theory

General Equilibrium Theory,

What is The Definition of General Equilibrium Theory?

  1. A simple definition of General Equilibrium Theory is: Wallace's theory of general equilibrium seeks to explain how macroeconomics works as a whole, not as a set of individual market phenomena.

    • General Balance analyzes the economy as a whole, rather than individual markets, as partial balance analysis.
    • General balance shows how supply and demand are negotiated and balances in an economy that operates simultaneously in multiple markets.
    • The balance between competitive supply and demand in different markets ultimately creates a price balance.
    • The French economist Leon Wallace proposed this theory in the late nineteenth century and developed it further.

Literal Meanings of General Equilibrium Theory

General:

Meanings of General:
  1. Influence or relation to all or most people, places or things.

  2. Consider or include key features or elements of an item and generally ignore exceptions.

  3. Boss or director

  4. A commander or high official in the army.

  5. The general public.

Sentences of General
  1. Books of general interest

  2. General introduction to this topic

  3. A general manager

  4. The strongest relationship was between military commanders and generals and officers who reported it directly.

Synonyms of General

public, traditional, fuzzy, universal, sweeping, broad, popular, indefinite, basic, unfocused, hazy, mainstream, vague, orthodox, rife, common, accepted, prevalent, conventional, prevailing, extensive, well established, rough, non-specific, established, traditionalist, inexact, overall, woolly

Equilibrium:

Meanings of Equilibrium:
  1. A state in which opposing forces or effects are in balance.

Sentences of Equilibrium
  1. Maintain social balance

Synonyms of Equilibrium

symmetry, balance, parity, equipoise, evenness, equality

Theory:

Meanings of Theory:
  1. An assumption or system of ideas that seeks to explain something, especially based on the general principles that are being stated.

Sentences of Theory
  1. Darwin's theory of evolution

Synonyms of Theory

surmise, supposition, proposition, hunch, thesis, conjecture, postulation, suspicion, premise, speculation, notion, hypothesis, feeling, presumption, postulate, presupposition, guess, assumption