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Essay text:
Hypothetical method.
• Induction and deduction are thus complementary.
• Ceteris paribus – all other things being equal.
• Macroeconomics – behavior of aggregates (collection of specific economic units treated as one unit) within economy. E,g economy as a whole: government, household and business sectors.
• Microeconomics – concerned with specific units within economy. E.g individual firm or household.
• Positive statements are facts, normative statements are value judgements.
• Bias – interfere with objective analysis
• Fallacy of Composition – What is true for an individual is also true for a group...
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