The sticky price assumption prevents prices from moving to clear all markets at their long-run equilibrium values, so the economy is not in a long-run equilibrium.

Punctuated Equilibrium: Charles Darwin understood that evolution was a slow and gradual process. By gradual, Darwin did not mean "perfectly smooth," but rather, "stepwise," with a species evolving ...

Julie Bang / Investopedia. Prisoner’s Dilemma . The prisoner’s dilemma is a common situation analyzed in game theory that demonstrates the Nash equilibrium. In this game, two criminals are ...

Microeconomics is the study of how individuals and businesses make choices regarding the best use of limited resources. Its principles can be usefully applied to decision-making in everyday life ...

The equilibrium position close equilibrium position A measure of the relative concentrations of substances in an equilibrium, showing if there are more reactants or products at equilibrium. of a ...