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  • Published: 17 Aug 2022
  • 51 Pages, 12800 Words
The Concept Of Invisible Hand And General Equilibrium Theory

Answer 1Answer 1: The concept of invisible hand was initially developed by Adam Smith which explains the unintended higher social advantages and the public products brought about by persons acting in their respective self-interests. Invisible hand can be regarded as the unobservable market force which enables the supply and demand of products in the free market to attain equilibrium automatically. Adam made an assumption that the economy can operate effectively in the free market situation...

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