Question

5) General equilibrium : Macro economics
: Micro economics​

Answer 1

Answer:

General Equilibrium Theory is a macroeconomic theory that explains how supply and demand in an economy with many markets interact dynamically and eventually culminate in an equilibrium of prices. The theory assumes that there is a gap between actual prices and equilibrium prices.

The goal of the theory is to identify the precise set of circumstances under which the equilibrium price is likely to achieve stability