An economic model is a purposeful simplification of reality, whose function includes:
A. Understanding the full complexity of the real world
B. Predicting the behavior of each and every individual or organization
C. Analyzing the behavior of a typical or average consumer or firm
D. Forecasting economic random events with a high level of accuracy
Answer: C
Economics
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The long-run real interest rate is the long-run nominal interest rate ________
A) minus inflation expectations B) plus all taxes C) plus inflation expectations D) minus all taxes
Economics
A decrease in the quantity of money supplied shifts the money supply curve to the ________, and the equilibrium interest rate ________, everything else held constant
A) right; falls B) right; rises C) left; falls D) left; rises
Economics