Answer to Question #15237 in Macroeconomics for sonakshi

Question

foundation of forward looking hypothesis

Answer 1

Hypothesis is scientifically reasonable assumed solution to some problem. The assumption becomes a hypothesis subject to:
assumption should not be in conflict with any scientific data;assumption should be in agreement, or at least be compatible with all the facts, which it refers;assumption has to be better and more completely than any other, to explain the phenomena and facts, to explain which it is involved.
Stages of forward looking hypotheses development.
I stage. The emergence of the hypothesis on the basis of the facts obtained in the preliminary acquaintance with the object of study.
II stage. Formation of excretory hypotheses.
Depending on the level of theoretical concepts hypotheses are divided into basic and output (cause and effect). The output of the hypothesis developed by analyzing the basic assumption as its consequences. The main hypotheses are generated and output in the development of research programs in the preparatory phase of research.
III stage. Comparison of excretory hypotheses with data on the main stage of the research. If this comparison indicates that all effects, theoretically derived by analyzing the basic assumptions exist in reality, it will prove that the hypothesis is plausible.