Types of Macro Economics

Macro Statics:

The word 'static'  is derived from the Greek word 'statike' which means bringing to standstill. In physics, it means a state of rest where there is, no movement. In economics, it implies a state characterized by movement at a particular level without any change. It is a state, according to Clarke, where five kinds of changes are conspicuous by their absence. The size of population, the supply of capital, methods of production, forms of business organization and wants of the people remain constant, but the economy continues to work at a steady pace. "It is to this active but unchanging process", writes Marshall, "that the expression static economics should be applied". 

Static economy is thus a timeless economy where no changes occur and it is necessarily in equilibrium. Indices are adjusted instantaneously, current demand, output and prices of goods and services. As pointed out by Prof. Samuelson,” Economic static concerns itself with the simultaneous and instantaneously or timeless determination of economic variables by mutually interdependent relations.”

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24 March 2013 at 08:04

it is simply understandable with diagram,and also famelier with our syallabus.Thank you.

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