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 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