General equilibrium refers to:
A)an equilibrium where there are no taxes.
B)an equilibrium where prices are not changing over time.
C)an equilibrium where no specific good is referred to.
D)an equilibrium where all markets are in equilibrium.

Question

Quizplus · Accepted Answer

General equilibrium refers to an equilibrium where all markets are in equilibrium, meaning that there is no excess supply or demand in any market. This includes goods, services, and factors of production such as labor and capital. It takes into account the interdependence of all markets and how changes in one market can affect others. A general equilibrium analysis is often used to understand the overall effects of policy changes or economic shocks on the economy as a whole. Therefore, choice D is the best answer.

General Equilibrium Refers To