If a Macroeconomist Studying the Causes of Unemployment Finds That,historically,changes

question 77

Multiple Choice

If a macroeconomist studying the causes of unemployment finds that,historically,changes in technology seem to have caused between five and 15 percent of changes in unemployment,then this macroeconomist is at which step in the process of developing an economic model?

• A)Identify the exogenous variables.
• B)Identify the endogenous variables.
• C)Develop a model.
• D)Compare the model with the data.
• E)Conduct prediction and policy analysis.

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Definitions:

Bonds

Fixed income investments representing a loan made by an investor to a borrower, typically corporate or governmental, which pays periodic interest payments and returns the principal at maturity.

Currency Futures

Financial contracts to exchange a specified amount of a currency at a predetermined future date and price, used to hedge against or speculate on currency movements.

Non-amortized Debt

Debt that is not regularly reduced through payments covering principle and interest over time.

Interest Payments

Interest payments are the regular payments made to a lender by a borrower for the use of borrowed money, typically calculated as a percentage of the principal.