Money is considered as one of the all-time greatest inventions of mankind. Modern economies are money-using economies. These economies are based on specialization and the division of labor that necessities the exchange of goods and services. Money is necessary to ease the swap or exchange of goods and services. It is generated by the central […]
Evolution and Meaning of Money Read More »
Dynamics is the part of economic analysis that deals with whether an economic system in disequilibrium reaches an equilibrium position, how long it takes, and the path it follows to do such. Dynamic refers to the evolutionary process in a dynamic manner. This method of economic analysis takes into account all the changes, lags, sequences,
Comparative statics tries to establish a relationship between two different interconnected economic variables in two different static situations. Comparative statics is a method of economic analysis that was first used by German economist F. Oppenheimer in 1916. According to Schumpeter, “Whenever we deal with disturbances of a given state by trying to indicate the static
Comparative Statics Read More »
Nowadays it becomes a regular phenomenon to see the dynamics of almost all the economic analyses and economic relationships. Before the 1920s dynamic analysis was confined only to certain analyses like an explanation of the business cycle. Since 1925, dynamic analysis has been used extensively in almost all branches of economics including the explanation of
The uniqueness of equilibrium is referred to the query of the number of times that equilibrium exists and corresponded values are determined in the particular model or system. If there is a single equilibrium that is the demand curve and supply curve meets only one time at a single positive price with the corresponding positive
Uniqueness of Equilibrium Read More »
For an individual person, equilibrium is said to be attained by him or her when he or she assumed or recognized his or her concrete performance or behavior as the possible most excellent under the given conditions and he or she does not feel beneficial to change his or her actions and in such case, this excellent situation is called equilibrium.
Existence of an Equilibrium Read More »