In constructing models,economists
A)leave out equations,since equations and models tend to contradict one another.
B)ignore the long run,since models are useful only for short-run analysis.
C)sometimes make assumptions that are contrary to features of the real world.
D)try to include every feature of the economy.

Question

Quizplus · Accepted Answer

Economists often need to simplify complex real-world situations in order to build models that can be easily analyzed. This means that they may need to make certain assumptions that are not true in the real world, but are necessary for the model to be useful. However, economists should strive to make these assumptions as realistic as possible and acknowledge the limitations of their models.

In Constructing Models,economists