Economic Studies: Quantitative and Qualitative Analysis

793 Words Feb 17th, 2018 3 Pages
It is broken down into two categories, macroeconomics, and microeconomics. Macroeconomics focuses on the behavior of the economy while microeconomics focuses on and individual as a consumer. Economics also focuses on two different studies known as quantitative and qualitative analysis in which they focus on the distribution, production, and allocation of economic resources. Many mathematical or statistical calculations are used in economics to study many different materials such as the government. Two very important economic theories include classical and Keynesian economics. They each have a specific approach on studying consumer behavior, monetary policy, and government spending. Classical economics began during and after the industrialization and was founded by David Ricardo where Friedrich von Hayek became a strong defender of this theory. The classical economic theory is known as free market also referred to as laissez-faire. This means it involves a very small amount of government interference. According to Say’s Law, supply creates its own demand. In the classical theory supply equals demand therefore, the economy is motivated when more goods are produced. There is no need for this interference because it is self-regulating. People make personal decisions on what they want,…