ANALYSIS OF EQUILIBRIUM AND INSTABILITY IN DYNAMIC ECONOMIC SYSTEMS

This study examines equilibrium and instability in dynamic economic systems through theoretical and mathematical analysis. The research focuses on the conditions under which economic systems reach equilibrium and the factors that lead to instability. Using differential and difference equations, the paper analyzes stability criteria and explores models such as the Solow growth model and the cobweb model. The findings highlight that while equilibrium provides a theoretical benchmark, real-world economic systems are often subject to instability due to nonlinear dynamics, time lags, and external shocks.

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