The four steps,and in the following order,are used to study macroeconomic behavior: (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 eventually may be tested.

Question

Quizplus · Accepted Answer

This is the correct order of the four steps in studying macroeconomic behavior. First, the facts are documented, then a model is developed based on those facts, the predictions of the model are compared to the original facts, and finally the model is used to make other predictions that can be tested.

The Four Steps,and in the Following Order,are Used to Study