Main menu

Pages

Static economic analysis and kinetic economic analysis.

The static study of economics does not concern itself with the time period or the path taken by economic variables until it reaches its final status.
The kinetic study of the economy takes into account the time period that the economic variables takes from one situations to another and the path the economic variables takes between the two modes, I. e. This study does not focus on the starting position and the ending mode only, but rather facuses on all other situations.
For example, ahigher commodity price leads to a decrease in the required quantities.
Static analysis, concerned with the apparent and the change that has occurred.
Kinetic analysis is concerned with the phenomenon in addition to studying the time taken to move between the two mods
.
Economic balance
Economic balance in economics means a situations in which there are no reasons for  a change in the reaches economic situation.
-The state of economic equilibrium is often achieved in the short period,because the factors that push toward equilibrium change continuously in the long period, at which time the equilibrium factors start their work again to achieved.
There are two types of economic equilibrium.
The first, is achieved at the micro level and is called microeconomic balance.
Second, it is achieved at the macro level and is colled the microeconomic balance.
-partial balance is linked to partial analysis, while total balance is related to total analysis.


reactions

Comments

table of contents title