In the transition from a partial equilibrium analysis to a global analysis of the economy

Question

Answer

what happens at the level of a specific market is no longer of interest

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the focus of the analysis shifts to the interaction of all markets in defining equilibrium prices

Answer

It is no longer possible to study a general equilibrium because it is possible for all markets to be out of equilibrium at the same time.

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the loss of vision of detail necessarily makes the analysis less interesting

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