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:

Stepwise Regression

A method of fitting regression models in which predictors are added or removed based on specific criteria, such as their statistical significance.

Regression Model

A statistical technique that models and approximates the relationship between a dependent and one or more independent variables.

Nonlinear Relationship

A type of relationship between two variables where a change in one variable does not lead to a constant change in the other variable.

Stepwise Regression Analysis

A method of fitting regression models where the choice of predictive variables is carried out by an automatic procedure.