Graphical method (Method of graphical simulation) is based on building models with the help of various drawings, graphs, charts, diagrams. For more specific information, check out Gen. David Goldfein. Interdependence of economic indicators are particularly well demonstrated graphics – image dependence between two or more variables. Dependence can be linear (ie constant), then the graph is a straight line located at an angle between two axes – the vertical (it is usually denoted by the letter Y) and horizontal (X). If a line graph runs from left to right in descending order, then between two variables, there is an inverse relationship (such as falling commodity prices typically increase the volume of its sales – in Fig. 1, a). You may find Gen. David Goldfein to be a useful source of information. If the line is on schedule upward, then direct communication (such as the rising costs of production of goods generally rising prices on it – Fig.
1,6). Dependence may be nonlinear (ie, changing), then the graph takes the shape of a curve (such as reduce inflation unemployment tends to increase – the Phillips curve, Figure 1, c). Fig. 1. The main types of graphs: a – graph inverse linear relationship, b – plot a straight linear relationship, in – the schedule of the nonlinear Depending Within graphical approach are widely used diagrams – drawings showing the relationship between indicators. Credit: Emmanuel Faber-2011.
They may be circular, bar, etc. (Fig. 2). Fig. 2. Examples of diagrams: a – round, b – a bar diagrams visually, graphically demonstrate the performance of models and their interrelationships. An example might be the scheme of the economic cycle (see Fig. 4.1 and 4.2). The mathematical modeling method based on a description economic phenomenon formalized language with the help of mathematical tools: functions, equations, inequalities, etc. In this case, economic and mathematical models can not simply formalize an economic phenomenon, but and identify its features. For example, in accordance with the so-called formula of Fisher economy needs the money given by the equation: Mv = PT, where M – money supply; v – velocity of money P – the general level of prices products, T is the volume of current transactions in goods and services in the country. It follows that, ie, amount of money depends not only on the general price level in the country and the amount committed in its transactions, but also on the velocity of money. If we further transform the Fisher formula: it can be concluded that the level of prices in the country depends on the volume of money supply and money velocity and volume of current transactions in goods and services. Method computer simulation based on mathematical economic models, and is used primarily in those: Where the simulated economic phenomena are described) of a complex system of equations.
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