economic variables
Question
a. They help us understand how people form expectations about future economic variables.b. They help
us understand the consumption decision of economic agents at a given point in time.
c. They help us understand the production decisions of firms at a given point in time.
d. They help us understand the movements in the business cycle.
2. Why do some economists prefer statistical models over the dynamic models that have been developed? How did the dynamic models fail?
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