An economic model:
A. exactly explains what happens in the real economy.
B. approximates all facets of what happens in the real economy.
C. does not make clear assumptions about the economic activity.
D. discards unnecessary details to clearly demonstrate the central principles of the economic activity.
Answer: D
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Refer to the table above. If government expenditure increases by $2,000 in the next year, ________, all other variables remaining unchanged
A) gross domestic product will increase to $404,000 B) gross domestic product will fall by $ 2,000 C) gross domestic product will fall to $400,000 D) gross domestic product will increase by $2,000
A measure of the ease with which an asset can be converted into money without a significant loss of value is called liquidity
Indicate whether the statement is true or false
Which does an intention-to-treat parameter measure in a program evaluation study?
A. The effect of participation in the program. B. The effect of the program on those who were eligible but did not participate. C. The effect of being eligible to participate in the program. D. The effect on the probability of participation due to being eligible to participate.
The U.S. economy has had persistent inflation in recent decades. A possible explanation for the inflation is that
A. there have been decreases in aggregate demand while aggregate supply has remained unchanged. B. there have been increases in the growth rate while aggregate demand has remained unchanged. C. there have been decreases in the growth rate while aggregate demand has remained unchanged. D. growth in aggregate demand has been greater than growth in aggregate supply.