A Constraint to Complicated Macroeconomic Models Has Been

question 7

Multiple Choice

A constraint to complicated macroeconomic models has been:

• A) that firms do not maximize profits.
• B) that agents are not rational.
• C) that economists have run out of ideas.
• D) a lack of computing power.
• E) an insufficient understanding of statistics.

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Definitions:

Very Low

A descriptor indicating a significantly below-average quantity, degree, or level.

About Average

Refers to values or outcomes that fall near the middle or mean in a set of data.

Median

The middle value in a list of numbers, which separates the higher half of the data sample from the lower half.

Percentile Points

Percentile points are values that divide a set of observations into 100 equal parts, indicating the percentage of data points that fall below a certain value.