Answer to Question #270124 in Finance for Willy

Question

Contribution and limitations of Samuelson general equilibrium model

Answer 1

Samuelson general equilibrium model was based on ways the private goods' market economy can be publicly financed through the public goods. The general equilibrium model however tries explaining characters of prices, supply and demand in an economy with various interacting markets through proving interaction of supply and demand ends in a general equilibrium.