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:

Market Demand Curve

A graphical representation showing the quantity of a particular good or service that consumers are willing and able to buy at various prices.

Individual Demand Curves

Graphical representations showing the relationship between the price of a good and the quantity of the good a single consumer is willing to buy at those prices.

Substitute Goods

Products or services that can replace or substitute each other in use, where an increase in the price of one leads to an increase in demand for the other.

Supply Curve

A graphical representation that shows the relationship between the price of a good and the quantity supplied, illustrating how changes in price influence supplier behaviour.