Patterns of Analysis of Economics – In general, it could be said that economy

is a field of study on the management of individual, community and state material resources to improve the welfare of human life. Because the economy is the science of human behavior and actions to meet the needs of their lives that vary and develop with existing resources through choices of production, consumption and/or distribution activities.

Economic theory (economics theory) provides views that describe the nature of the relationships that exist in economic activity, and predictions about events that will occur if a situation that affects them changes. The task of economic theory is to provide an abstraction of the reality that occurs in the economy. Economics is complex, for that we need simplification and abstraction as outlined in the theory.

The objectives of economic policy include;

  1. Achieving rapid economic growth,
  2. Creating price stability
  3. Overcoming the problem of unemployment, and
  4. Realizing an even distribution of income.
Patterns of Analysis of Economics
Patterns of Analysis of Economics

Economics method

Economics method In simple terms, it is a human effort to fulfill unlimited needs by means of fulfilling needs in the form of goods and services that are rare and limited and have alternative uses. For this reason, the way to fulfill their needs is related to the methods in economics.

The methods used in economics according to Chaurmain and concerned (1994:14-16) include the following:

1. Inductive method

Inductive method is a method where a decision is made by collecting all the information data that exists in the reality of life. This reality includes every element of life experienced by life, families, local communities, and so on who try to find solutions so that efforts to fulfill these needs can be studied as carefully as possible. For example, efforts to generate and distribute economic resources. These efforts are carried out in such a way as to obtain goods and services that can be available at the right amount, price and time to fulfill these needs. To achieve these needs, planning is needed in economics to function as a way or method to compile a list of needs for a number of goods and services needed by society.

2. Deductive method

The deductive method is a method of economics that works on the basis of laws, provisions, or general principles that have been tested for truth. With this method, economics tries to determine how to solve problems in accordance with references, legal principles, and provisions in economics. For example, in economics there is a law which states that if the supply of goods and services decreases in society, while the demand remains constant, the price of goods and services will increase. Starting from these economic laws, economists have been able to deductively determine that it must be maintained so that the supply of goods and services needed by the community can always be sufficient in quantity and quality. Buliding (1955:12) calls it the method of intellectual experiment.

3. Mathematical Method

Mathematical method is a method used to solve economic problems by solving problems mathematically. It means that in mathematics there is a habit that begins with the discussion of the postulates. Through the discussion of these arguments, it can be ascertained that the study can be generally accepted.

4. Statistical method

Statistical method is a method of solving economic problems by collecting, processing, analyzing, interpreting and presenting data in the form of statistical figures. From the figures presented, the real problem can be identified. For example, the discussion of unemployment. In this case, it can first be identified elements related to unemployment, for example company data, data on educated or less educated workers, types and numbers of available jobs, number and level of wages offered by the company, where the company operates, average – the average place of residence of the prospective workers. from the collected data, an economist can compile statistical analysis and interpretation of data related to solving the unemployment problem. Furthermore, from these figures it can be determined the right way to help overcome the unemployment problem accurately based on the researcher’s interpretation of the figures presented by statistics.

Patterns of Analysis of Economics

In the pattern of analysis of economics can be, namely:

  1. Descriptive Economics (descriptive economics) which describes the actual state of affairs in the economy. Its main task is to collect factual information that is relevant to economic problems. The description of economic problems is complicated, due to the fact that the human aspect is influenced by many factors in his behavior. This happens because in society, the changes that occur are complex, and of course not only influenced by economic variables.
  2. Applied Economics (applied economics) is also called policy economics, by taking concepts in economic theory and trying to apply them in economic policy while still paying attention to the data and facts collected by descriptive economics.

Reference :

  1. Sadono Sukirno, 2004. Macroeconomics: Introductory Theory, Third Edition, RajaGrafindo Persada, Jakarta.
  2. Imam Asngari, 2004. Introduction to Macroeconomics, Forum Heds-FE Unsri, Inderalaya.
  3. http://myilmu Lintas
  4. FA Hayek, 1948. Individualism and Economic Order. Scroll down to chapter-preview links.
  5. George J. Stigler and Paul A. Samuelson, 1963. “A Dialogue on the Proper Economic Role of the State.” Selected Papers, No. 7. University of Chicago Graduate School of Business.
  6. http://myilmu Lintas