Economists need different models of the economy because:
A) The economy behaves differently depending on how much time has passed after a demand shock
B) We need a different model to analyze a positive demand shock than we need to analyze a negative demand shock
C) The way economic performance is measured of changes over time
D) Prices tend to be less flexible over time

Question

Quizplus · Accepted Answer

Economists need different models because the economy's behavior can vary over different time frames after a demand shock, requiring different analytical approaches.

Economists Need Different Models of the Economy Because