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What are the basic analytical frameworks of modern economics?
The fundamental analytical framework of modern economics:
The fundamental analytical framework for an economic theory comprises five aspects or steps as follows:
a. Requirement of economic environments,
b. Imposition of behavioral assumptions,
c. Adoption of economic institutional arrangements,
d. Determination of equilibrium, and
e. Estimate of outcomes resulting through an undertaken institution.
Factors Shifting Demand Curve -
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Time Value of Money The time value of money is the price or value placed on time. It is commonly thought of as the opportunity cost related with a particular investment. Money
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