A Good Economic Model

question 54

Multiple Choice

A good economic model

• A)does not include more than two variables.
• B)includes only those features of the world that are needed for the purpose at hand.
• C)describes all aspects of the economic world.
• D)includes only features of the world that can be described numerically.
• E)includes more than two variables but less than 10 variables.

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Definitions:

Forecast Value

A predicted numerical value that represents the expected outcome of a variable of interest in future periods, based on past and current data trends.

Weighted Moving Average

A calculated average of data points where different data points are given different weights, often used in technical analysis to smooth out price data.

Three-period

Pertains typically to a moving average or other statistical calculation considering data from three specific time periods for analysis or forecasting.

Weightage

Weightage refers to the assigned importance or value given to elements within a calculation or process, influencing the overall outcome.