Economists Tend to Judge a Model Based Upon

question 52

Multiple Choice

Economists tend to judge a model based upon

• A) the reality of its assumptions.
• B) the accuracy of its predictions.
• C) its simplicity.
• D) its complexity.

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Definitions:

Aggregate Demand

The all-embracing pursuit of goods and services in an economy, calculated at a fixed overall price level and within a chosen time frame.

Business Cycle Trough

The phase in the business cycle where economic activity is at its lowest point, preceding a recovery or expansion period.

Purchasing Power

The financial ability to buy goods and services; it reflects the value of money in terms of the quantity of goods or services that one unit of money can buy.

Government Bonds

Debt securities issued by a government to support government spending and obligations.