W.C. Mitchell: The Heterodox Economy Group Assignment

The mainstream economic view considers equilibrium state as the core of economic activity.

Mitchell prefers to focus on real factors and real progress before forming a theory rather than simply using equilibrium state as a tool to analyze economic activity because the core of economic activity is not an equilibrium state but rather the interaction between institutional factors that maintain a stable social structure and technical forces that drive change.

The deductive reasoning method is unable to address the complex dynamics of the real economic system, leading to inaccurate conclusions.

<p>Mitchell's argument against mainstream economics led to the development of statistical methods by relying on empirical evidence.</p> Signup and view all the answers

<p>The core of economic activity is the interaction between institutional factors that maintain a stable social structure and technical forces that drive change, rather than an equilibrium state.</p> Signup and view all the answers