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International Journal of Academic Research in Accounting, Finance and Management Sciences

Open Access Journal

ISSN: 2225-8329

Characteristics of the Equilibrium Model - Use in Macroeconomic Analyzes

Madalina-Gabriela Anghel, Gabriel-Stefan Dumbrava, Daniel Dumitru, Tudor Samson

http://dx.doi.org/10.6007/IJARAFMS/v9-i4/6630

Open access

The equilibrium model is one that, based on the analysis of the considered variables, gives a certain point where the economy evolves correctly, without making over-stocks or without producing products according to the market requirement. The production model at the equilibrium point can be considered after we have done a study of the way in which the production evolves and in which the distribution for consumption is achieved within the national economy. The graphical representations as well as the series of data over a longer period of time, indicate the points where the production reaches a point of stability, of equilibrium and in parallel and the consumption reaches through the game of the market to a point of such equilibrium. It is interesting in the macroeconomic analysis to identify those moments, those points in which the realization of production and its absorption through consumption and investment, reach a point of stability, considering from here that this is that point of macrostability. The model by calculated parameters gives the possibility to estimates, which ultimately determines adjustments on how the production is carried out in close accordance with the degree of absorption and how to avoid making unusable stocks, which are sometimes huge financial expenses, or lack of products on the market.

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To cite this article: Anghel, M.-G., Dumbrava, G.-S., Dumitru, D., Samson, T. (2019). Characteristics of the Equilibrium Model - Use in Macroeconomic Analyzes, International Journal of Academic Research in Accounting, Finance and Management Sciences 9 (4): 30-35