When Constructing a Basic Macroeconomic Model, Several Assumptions (Not Realistic

question 172

Multiple Choice

When constructing a basic macroeconomic model, several assumptions (not realistic, but necessary to simplify the analysis) are made.Which of the following are assumed to be constant?

• A)the price level 
• B)the rate of interest 
• C)the foreign exchange rate 
• D)the level of government spending 
• E)All of the above are held constant.

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Definitions:

Organizational Strategy

A plan of action designed to achieve long-term or overall goals and objectives of an organization.

Human Capital

The collective skills, knowledge, or other intangible assets of individuals that can be used to create economic value for the individuals, their employers, or the community.

Balanced Scorecard

A strategic planning and management system used by organizations to communicate what they are trying to accomplish, align the day-to-day work that everyone is doing with strategy, measure and monitor progress towards strategic targets.

Markov Analysis

Markov analysis is a statistical technique used to predict the future behavior of variables or systems based on past behavior and probabilistic factors.