Applied Economics Assignment Help, Applied Economics  Homework Help

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About Applied Economics

Applied Economics is that branch of economics, which deals with the application of economic theories and principles to the real world situations .The aim of this application is the potential outcome prediction. The design of the applied economics is in such a way that the potential outcomes are reviewed analytically without the noise associated with explanations that are not backed by numbers. Econometrics and case studies are also involved in this branch of economics. Thus, this analysis involves solid economic analysis together with appropriate quantitative methods. The focus of this branch of economics is the need for theoretical and empirical problem solving skills, which can be applied in a wide range of settings. A general analytical approach and a way of thinking are provided by the field of applied economics instead of broad knowledge on various issues.

Applied economics handles the issues associated with individual producers, consumers and factor owners and the interaction of their problems with the entire economy, at the micro level. At the macro level, the focus of analysis is the behaviour of economic aggregates like inflation and unemployment rates and the method of public policy choices affecting the economic outcomes. Applied economics also handles issues like the implications of interaction between different countries like international trade and factor movements at the global level. The reasons for the country wise differences in the development trajectories are also analyzed in this field of Economics.

The exemplary theoretical models in applied economics start with Adam Smith who theorized that the invisible hand is a natural and desirable economic coordination process. The theoretical model by Keynes however argued the need for government intervention in the stimulation of economy criticising the neoclassical economists. This argument was based on the example of the Great Depression in the 1930s.The next economist Jane Addams advocated for public investment and the economic reforms benefiting the poor. Following this, Harry Lloyd Hopkins was the economist that promoted job-creating legislation.

According to the applied economic theory, comparisons are made for both social environment and society to market place. Certain common characteristics for markets are assumed as per the applied economic theory and they are assumed to follow certain rules. An optimal level of government regulation is assumed here while optimal outcomes are assumed to be produced by economies with minimal regulatory policies. The extension of marketplace logic to all spheres of common life is another main assumption of the applied economic theory.

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