General equilibrium

General equilibrium is like a balanced scale. Imagine you are trying to balance a scale with two bowls - one on each side. If you put something in one of the bowls, the scale will get off balance, but if you put something in the other bowl that weighs the same, the scale will stay balanced. That's like general equilibrium - it's when all the different parts of an economy are working together in balance. For example, if the prices for certain goods and services go up, people will have less money to spend, so the prices for other goods and services might go down to balance out the increase. That keeps the economy in balance.