Chapter 1: Graphs in Economics

What are graphs? For what different purposes are they used in Economics?

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Economics explains and analyses various economic events occurring in the real world. An analysis of the statistics provided by the state, banks and international organizations is very purposefully done in economics.

Lay persons might not be interested in discussions and analysis of events done by experts. But their attention is drawn when important aspects of certain events and matters pertaining to economic changes are presented by way of pictures; and this way certain information which must be conveyed to people, reaches them.

Generally two types of pictures are used to depict such information and these are called: (1) Diagrams and (2) Graphs.


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