Economic Analysis and Economic Policy: Economics, like other social sciences, has two aspects. One aspect is analytical and the other is practical. Both these aspects are of great importance because economic analysis is the basis for economic policy. These are, in fact, integral parts of each other. What is economic Theory? Economic analysis or economic theory is a body of economic principles built... 

Methods of Economics Analysis: An economic theory derives laws or generalizations through two methods (1) Deductive Method and (2) Inductive Method. These two ways of deriving economic generalizations are now explained in brief. Deductive Method: The deductive method is also named as analytical, abstract or prior method. The deductive method consists in deriving conclusions from general truths. It...