Micro-economic variables

Macro- and Micro-Economic Variables of the Model and their Interdependence... 

The concept of equilibrium is quite commonly used in macro- and micro-economics. In fact, in natural systems, one can only expect unstable dynamic equilibrium. It may be noted that one can have stable non-equilibrium steady states. Approach to the so-called equilibrium or to such steady states would depend on a number of variables, which have to be carefully identified. Cause Effect relationship leads to the concept of Force Flux discussed in Part One in this book which is quite relevant for real systems. In the steady state, balance of forces occurs leading to balancing of effects. Typical example in economics is demand-supply relationship in the context of time variations in price and production. 

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