Question

In a general equilibrium Answer: A. supply equals demand for all goods and markets only in the persent time as we don’t know what happens in the future. B. prices are exogenous because the wage rate is fixed by unions. C. supply equals demand for the goods market but not for the labor market because the model needs to take into account that unemployment exists in the real world. D. supply equals demand for all goods and markets in all periods.

Answer 1

Answer:

D. supply equals demand for all goods and markets in all periods.

Explanation:

General equilibrium analyzes the entire economy as a whole rather than it's component parts. And the theory seeks to prove that interaction of supply and demand tend to move equilibrium.