Making Use of an Economic Model Is a Process of

question 45

Multiple Choice

Making use of an economic model is a process of

• A) solving hundreds of simultaneous equations.
• B) running experiments to determine how changes in the endogenous variables will change the exogenous variables.
• C) running experiments to determine how changes in the exogenous variables will change the endogenous variables.
• D) resolving inconsistencies in the actions of economic agents.
• E) determining how a closed economy is linked to an open economy.

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Definitions:

Accounting Period

A specific period of time used for financial reporting purposes, usually a quarter or a year, to measure business activities and prepare financial statements.

Trial Balance

A bookkeeping report that lists the balances of all ledgers in two columns, debits and credits, ensuring that total debits match total credits.

Chart of Accounts

A systematic listing of all accounts used by an organization, categorized to facilitate financial reporting and bookkeeping.

GAAP

Generally Accepted Accounting Principles, the standard framework of guidelines for financial accounting in the U.S.