Question

How does dynamic analysis differ from static analysis?

Options

• Static uses demand; dynamic uses supply only

• Static ignores equilibrium; dynamic ignores disequilibrium

• Static compares equilibrium positions, while dynamic explains movement between them over time

• Static deals with time; dynamic does not

Answer 1

Static compares equilibrium positions, while dynamic explains movement between them over time

Explanation:

Static analysis studies equilibrium at a point, whereas dynamic analysis traces the path of adjustment from one equilibrium position to another over time.