A model may be expressed in the form of words, diagrams, tables of data, graphs, mathematical equations or combinations of these. What procedures do economists use. Economists use economic Tools or Principles to set up Policies designed to solve economic Problems . Deriving principles is called Economic Theory or Economic Analysis. In studying economic behavior, economists may start from theory to arrive at facts or they may start for facts to arrive at a theory.
Economists create principles or theories to form facts or move from particular to general.
Economists create facts from principles or theory. In deduction economists generalize through hypothetical method. Here economics use facts and principles to create policies designed to achieve economic goals, collect and present facts. This is sometimes called applied economics. Graphical Expression Economics models may take the form of graphs.