Economic Models Quiz

Make economic processes more complex

Avoid the use of mathematical frameworks

Provide exact predictions of economic variables

Simplify and abstract observed data (correct)

To eliminate the need for structural parameters

Because it makes economic models less accurate

Due to the enormous complexity of economic processes (correct)

To avoid the use of exogenous variables

Investigation, theorizing, and fitting theories to the world (correct)

Creating complex and convoluted frameworks

Avoiding the use of exogenous variables

Exact prediction of economic variables

<p>Theoretical construct representing economic processes</p> Signup and view all the answers

<p>Structural parameters</p> Signup and view all the answers