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Chapter 16

Chapter 16. General Equilibrium and Economic Efficiency. Topics to be Discussed. General Equilibrium Analysis Efficiency in Exchange Equity and Efficiency Efficiency in Production. Topics to be Discussed. The Gains from Free Trade On Overview--The Efficiency of Competitive Markets

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General Equilibrium Analysis

General Equilibrium Analysis. Partial equilibrium analysis assumes that activity in one market is independent of other markets. General equilibrium analysis determines the prices and quantity in all markets simultaneously and takes the feedback effect into account.

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1.58k views • 29 slides

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Chapter 16

General Equilibrium Analysis