|
|
INSIDE LAG: In the context of economic policies, the time between a shock to the economy and corrective government action responding to the shock. This is one of two primary lags in the use of economic policies. The other is outside lag, the time between the government action and the affect on the economy. The inside lag can be divided into the recognition lag and the implementation lag. The recognition lag is identifying the shock or need for action and the implementation is determining the appropriate policy response. Monetary policy tends to have a shorter outside lag than fiscal policy. The length of the inside and outside lags is one argument against the use of discretionary policies to stabilize business cycles.
Visit the GLOSS*arama
|
|
|
|
                          
STABLE EQUILIBRIUM: An equilibrium that is restored if disrupted by an external force. This should be contrasted with unstable equilibrium. Most equilibria studied in economics are of the stable variety. The most common example is market equilibrium. Should the existing market equilibrium be disrupted by a change in one of the demand or supply determinants, the resulting shortage or surplus causes the price to change, which causes changes in quantity demanded and quantity supplied needed to restore equilibrium. The new equilibrium may by, and probably is, at a different equilibrium price and quantity, but it is equilibrium, and it will remain there until disrupted by an external force. See also | equilibrium | unstable equilibrium | disequilibrium | market equilibrium | demand determinants | supply determinants | shortage | surplus | equilibrium price | equilibrium quantity |
Recommended Citation:STABLE EQUILIBRIUM, AmosWEB GLOSS*arama, http://www.AmosWEB.com, AmosWEB LLC, 2000-2024. [Accessed: April 24, 2024].
AmosWEB Encyclonomic WEB*pedia:Additional information on this term can be found at: WEB*pedia: stable equilibrium
Search Again?
Back to the GLOSS*arama
|
|
|
THREE-SECTOR KEYNESIAN MODEL A Keynesian model of the macroeconomy that includes the three domestic sectors, the household sector, the business sector, and the government sector. This Keynesian model variation adds the government sector (or public sector) to the household and business sectors that make up the two-sector model. This model enables an analysis of government stabilization policies, especially how fiscal policy changes in government purchases and taxes can be used to close recessionary gaps and inflationary gaps. Equilibrium is identified as the intersection between the C + I + G line and the 45-degree line. Two related models are the two-sector Keynesian model and the four-sector Keynesian model.
Complete Entry | Visit the WEB*pedia |
|
|
WHITE GULLIBON
[What's This?]
Today, you are likely to spend a great deal of time touring the new suburban shopping complex wanting to buy either an AC adapter that won't fry your computer or a case for your designer sunglasses. Be on the lookout for telephone calls from former employers.
Your Complete Scope
This isn't me! What am I?
|
|
|
Okun's Law posits that the unemployment rate increases by 1% for every 2% gap between real GDP and full-employment real GDP.
|
|
|
"The greatest things ever done on Earth have been done little by little. " -- William Jennings Bryan
|
|
CBA
Cost Benefit Analysis
|
|
|
Tell us what you think about AmosWEB. Like what you see? Have suggestions for improvements? Let us know. Click the User Feedback link.
User Feedback
|
|
