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

Question

Quizplus · Accepted Answer

The correct order is to first document the facts, then develop a model based on those facts, compare the predictions of the model to the original facts, and finally use the model to make other predictions that may eventually be tested. This process allows for a systematic approach to studying macroeconomic behavior. Choice A lists these steps in the correct order.

Which of the Following Lists the Four Steps We Use