if the market for investment is initially in equilibrium at point a, but then implementation of fiscal policy causes crowding out to occur, the equilibrium in the market will likely:

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27-10-2021
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if the market for investment is initially in equilibrium at point a, but then implementation of fiscal policy causes crowding out to occur, the equilibrium in the market will likely:

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francocanacari francocanacari · Answer 1 · 2021-11-04T05:00:38+01:00

If the market for investment is initially in equilibrium at point a, but then implementation of fiscal policy causes crowding out to occur, the equilibrium in the market will likely dissapear.

Economic equilibrium means the state of the economy in which the various factors under consideration are in equilibrium and their values do not change without external influence. In particular, it refers to the balance between supply and demand, the state in which the amount of demand corresponds to the amount of supply.

Market equilibrium refers to the process by which the market price is determined through competition. Producers of commodities offer the quantity of product just in demand at equilibrium at the market price and there is no pressure to change the price.

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