Conclusion

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Conclusion

It goes without saying that dynamics is a more general and fundamental approach than statics. but at the same time it would not be proper to discount the importance of statics. Harrod has vehemently held that statics is equally applicable to various branches of economic science. The study of the working that when it is in motion. Likewise. for really useful results to be obtained. the application of dynamic analysis should be preceded by the use of static analysis. In fact. dynamic and static are two inseparable wings. Tile dynamics is composed of the statics. We are in a position to study the dynamic only because it is comprised of the static. In dynamic economics, what we really study arc a large number of static positions of an economy. If the economic dynamics is a movie of a functioning economy, static is a still picture depicting the stationary position of the economy. Thus, the laws of static economics must also apply to dynamics. The only thing that has got to be done is to introduce a variable that could link one static position with the other. Indeed such a link variable arc the expectations of the economic units that forge the present with the future and thus transform statics into dynamics. It is. therefore, reasonable to conclude that statics and dynamics are complementary to each other,

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Conclusion