What is the General Equilibrium Theory and how is it used in economic policy?

The Decision Theory can offer several benefits in business decision-making. It encourages comprehensive consideration of all possible outcomes before reaching a conclusion, promoting thoroughness and reducing the risk of overlooking important factors. It also fosters strategic thinking and patience, as it requires envisioning how different factors will play out in the end. This can lead to more informed, well-rounded decisions that take into account all relevant aspects and potential impacts.

The Mechanism Design Theory can help in questioning the usefulness of business strategies by providing a framework to understand the rules of the game and question their effectiveness. It allows one to analyze whether the existing rules and strategies are helping or harming the outcome. This theory encourages critical thinking and questioning of established norms and strategies, which can lead to the development of more effective strategies.

The General Equilibrium Theory is used in economic policy issues to analyze stock markets and exchange rates. However, specific examples of its application in policy issues are not provided in the content.