Just like models constructed in other areas of science, economic models
a. incorporate assumptions that contradict reality.
b. incorporate all details of the real world.
c. complicate reality.
d. avoid the use of diagrams and equations.
a
You might also like to view...
Which is not a result of regulation, or government intervention in a market?
(A) Influencing the price of a good. (B) Governing the quantity of a good. (C) Lowering the costs of production of a good. (D) Affecting the quality of a good.
Economists and policy makers questioned the effectiveness of discretionary fiscal policy during the 1970s for all the following reasons except: a. the difficulty of estimating the natural rate of unemployment
b. the time lags involved in implementing fiscal policy. c. the existence of possible feedback effects of fiscal policy on aggregate supply. d. the distinction between current and permanent income. e. the possible feedback effects of fiscal policy on aggregate demand.