Question

Research in macroeconomics such as the principle of acceleration describing the relationship between income and consumption, has been derived based on ______________.

• A. inductive method
• B. deductive method
• C. both (a) and (b)
• D. neither (a) nor (b)

Answer 1

The correct option is A inductive method

The inductive method involves the process of reasoning from particular facts to general principle.

This method consists in deriving conclusions from general truths, taking few general principles and applying them to draw conclusions in general.

Thus, macroeconomics uses inductive method in its study.