To Be Useful, Macroeconomic Models

question 17

Multiple Choice

To be useful, macroeconomic models

• A)never generate testable hypothesis.
• B)must be extremely realistic.
• C)must be complete, accurate descriptions of the world.
• D)provides a lot of intricate details.
• E)must be simple.

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Definitions:

Hawk-Dove Game

This is a model in game theory that examines strategies of conflict and cooperation among players, with the "hawks" representing aggressive strategies and the "doves" representing peaceful ones.

Proportion

A part, share, or number considered in comparative relation to a whole.

Payoff

Refers to the potential return or outcome received from a particular strategy or decision in game theory and economics.

Nash Equilibrium

A concept within game theory where no player can benefit by changing strategies while the other players keep theirs unchanged, representing a state of mutual best responses.