Question

What is dynamic economics?

Answer 1

Answer:

According to Prof. Harrod, “Economic dynamics is the study of an economy in which rates of output are changing.” ADVERTISEMENTS: In the real world, economic variables like population, capital, techniques of production, fashions, habits, etc. do not change at a constant rate.

Answer 2

Answer:

The concept of dynamics is nearer to reality. In dynamic economics we study the economic variables like consumption function, income and investment in a dynamic state. According to Prof. Harrod, “Economic dynamics is the study of an economy in which rates of output are changing.”