Courses : Intermediate Microeconomics Lecturer : Frischa Adellia Semester : 4th Semester, 2022/2023 Sesion Limited General Balance Limited General Equilibrium is a form of analysis that assumes that markets involved in the economy have interactions with each other, but does not assume that all markets interact directly and directly. In this case, the limited general equilibrium focuses on the causal relationship between markets that are directly related to each other. This analysis helps to understand the impact of changes in one market on other markets that are related to, but not directly related to, that market. Limited general equilibrium is often used to analyze the impact of economic policies on the economy, such as the impact of taxes or subsidies on different markets. Limited general equilibrium analysis can provide a more complete picture of how economic policies can affect the economy as a whole. However, limited general balance does not take into account the interrelationships between markets as a whole, so it cannot take into account the long-term effects of these policies on the economy as a whole. A partial general equilibrium is an equilibrium analysis that considers the interactions among several markets, but only assumes that there is equilibrium in some markets. That is, in limited general equilibrium, prices in certain markets have reached equilibrium, but prices in other markets may still be in the process of reaching equilibrium. An example of a limited general equilibrium is the analysis of equilibrium in the market for goods and services with the assumption that all factors of production in the labor market have reached equilibrium. In this case, although balance is achieved in the labor market, there are still other markets such as the capital market, financial market and other asset markets that have not yet reached balance. Therefore, in this equilibrium analysis, prices in these markets are still in the process of reaching equilibrium. In conclusion, limited general equilibrium can provide a more accurate picture of the overall economic balance, but still takes into account the existence of a market that has not yet reached equilibrium. Limited general equilibrium is a concept in economics that considers the effect of changes in one market on other markets, but does not consider all markets in the economy as a whole. In this context, there are several characteristics of a limited general balance, namely: 1. Limited to a few markets: The generalized equilibrium model is limited to considering only the relationships between a few markets and does not consider all markets in the economy. 2. Static aspect: The limited general equilibrium model is more static, meaning that it only describes market conditions at a certain point in time and does not consider the dynamics of price and quantity changes in the future. 3. Focus on perfect competition: Limited general equilibrium models often consider conditions of perfect competition in the markets analyzed, and do not consider the effects of oligopoly or monopoly markets. 4. Less accurate: Because finite generalized equilibrium models do not consider all markets in the economy, they may not be accurate in predicting significant changes in the economy as a whole. 5. Applicable to specific policies: The limited general equilibrium model can be used to identify policies that can affect the equilibrium in the market being analyzed, but not to provide an overall view of the economy as a whole. Limited generalized equilibrium, also known as narrower partial equilibrium, involves the economic analysis of several markets or industries, and does not consider the balance of the entire economy. This analysis focuses on the specific effect of one change on several related markets or industries, without considering the overall effect on the economy as a whole. One example of limited general equilibrium is the analysis of partial general equilibrium of the labor market. In this analysis, the focus is on the factors that affect the supply of labor and the demand for labor in a particular industry or in a particular region, and how this might affect wages and wages. In a limited general balance, some of the characteristics that can be found include: 1. Focus on analyzing one or a few markets or industries, not the entire economy. 2. Considering the effect of changes in one market or industry on other related markets or industries. 3. Does not consider the overall effect of changes on the economy as a whole. 4. Can be used to study the effect of certain policies on certain markets or industries.