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What is use of analytical tools in the modern economics?
Analytical Tools:
Modern economics also gives different powerful analytical tools which are usually specified by geometrical or mathematical models. Benefits of such tools can assist us to analyze complicated economic behavior and phenomena by a simple diagram or mathematical structure into a model. Illustration are comprise:
a. The demand-supply curve model,
b. Samuelson’s overlapping generation model,
c. The principal-agent model, and
d. The game theoretical model.
How does planning serve as a solution to economic problems?
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