Which of the Following Lists the Four Steps We Use

question 31

Multiple Choice

Which of the following lists the four steps we use to study macroeconomic behavior in the correct order?

• A) (1) document the facts; (2) develop a model; (3) compare the predictions of the model to the original facts; (4) use the model to make other predictions that may eventually be tested
• B) (1) document the facts; (2) use the model to make other predictions that may eventually be tested; (3) compare the predictions of the model to the original facts; (4) develop a model
• C) (1) compare the predictions of the model to the original facts; (2) develop a model; (3) document the facts; (4) use the model to make other predictions that may eventually be tested
• D) (1) develop a model; (2) document the facts; (3) compare the predictions of the model to the original facts; (4) use the model to make other predictions that may eventually be tested
• E) None of the above answers are correct.

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Definitions:

Equity Capital

The amount of money that is invested in a company by its owners, as opposed to borrowed funds or debt.

Tax-Deductible

A portion of expenses that can be subtracted from gross income to reduce taxable income.

Discriminatory

Refers to unfair treatment of individuals or groups based on characteristics such as race, gender, age, or sexual orientation.

Health Insurance

A type of insurance coverage that pays for medical and surgical expenses incurred by the insured, offering protection against high unexpected healthcare costs.