Consider how an economic model can be viewed as a simplified description of reality, designed to yield hypotheses about economic behavior that can be tested. In essence, a simulation. Hence, one important element of an economic model is that it is necessarily subjective in design because there are no objective measures of economic outcomes. If different economists make different judgments about what is needed, how can we tell if a model is ‘useful’? What does this tell us about economic behavior?
Essay instructions: Assignment 1: Demand-side Policies and the Great Recession of 2008Macroeconomic analysis deals with the crucial issue of government
Essay instructions: Assignment 1: Demand-side Policies and the Great Recession of 2008Macroeconomic analysis deals with the crucial issue of government involvement in the operation of “free market eco