Question

difference between comparite and static analysis

Answer 1

Static economic analysis

These are studies on a particular period of time. It is for a point in time. For instance, market equilibrium. At this point, the demand, and, the supply are equal to each other. This analysis is for getting information for a point in time.

Comparative static economic analysis

The focus is on external forces that make a particular model change. The external force is an exogenous variable. This is a variable that is a parameter or constant term, where the value is defined outside the model. For instance, the Keynesian IS-LM with equilibrium in the money market, and, the goods market. This analysis is for values at many different points in time.

Dynamic analysis is to study if a variable will converge to a steady state.