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Unformatted text preview: a state or condition that will continue indefinitely as long as factors exogenous to the system remain unchanged 2.7. Comparative statics analysis used to examine how a change in some exogenous variable will affect the level of some endogenous variable in an economic system 3. Positive and Normative Analysis 3.1. Positive analysis analysis that attempts to explain how an economic system works or to predict how it will change over time What is happening? 3.2. Normative analysis analysis that typically focuses on issues of social welfare, examining what will enhance or detract from the common good What should be done?...
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- Fall '07