In general equilibrium models, which one is the definition of Numeraire price ?
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1 mark, −0.33MicroeconomicsGeneral equilibrium and exchange economiesWalras' law, numeraire and relative pricesModerateabout 1 min
UoH 2019 Question 88: General equilibrium and exchange economies
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General equilibrium and exchange economies has come up 69 times in 7 exams since 2004.
What this question tests
This question is on Walras' law, numeraire and relative prices, part of General equilibrium and exchange economies in Microeconomics.
Why one market clears automatically when the others do, and why only relative prices matter.
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