general equilibrium analysis

general equilibrium analysis

the analysis of the interrelationships that exist between subsectors of an ECONOMY. General equilibrium analysis proceeds on the basis that events in one sector can have such a significant impact on other sectors that feedback effects, in turn, are likely to affect the functioning of the first. See Fig. 81 .

Thus, in general equilibrium analysis, an attempt is made to determine the nature and strength of inter-sectoral linkages using, for example, INPUT-OUTPUT analysis. See PARTIAL EQUILIBRIUM ANALYSIS.

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