Deductive method of Economic Analysis Introduction The deductive method is also known as the analytical, abstract, or prior method. Deductive method consists in deriving conclusions from general truths, takes a few general principles and applies them to draw conclusions. The deductive method derives new conclusions from fundamental assumptions or from truth established by other methods. … Read more
Introduction Inductive methods which is also called empirical method was adopted by the “Historical School of Economists”. It involves the process of reasoning from particular facts to general principle. This type of reasoning flows from facts to theory. First, we collect information and facts and then move towards providing evidence using economic theory and facts. This method formulates … Read more
Introduction The deductive method is also named as an analytical, abstract or prior method. The deductive method consists in deriving conclusions from general truths, takes a few general principles and applies them to draw conclusions. Deductive methods of economic analysis follows a top-down approach where theories and principles guide the analysis and assist in making … Read more