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.

Question

Quizplus · Accepted Answer

The macroeconomist comparing historical data on technology changes and unemployment changes is at the step of comparing the model with the data. This step involves assessing how well the model's predictions align with actual historical data.

If a Macroeconomist Studying the Causes of Unemployment Finds That,historically,changes