The use of data in economic models is important because
A) the model's predictive value rests on supportive evidence from real-world data.
B) the models are always complex in nature.
C) models must analyze every possible angle of the problem.
D) social problems analyzed by economists require long streams of data.

Question

Quizplus · Accepted Answer

The use of data in economic models is essential in providing evidence to support the accuracy of the model's predictions. Without data, the model becomes less credible and less likely to provide valuable insights into real-world economic problems.

The Use of Data in Economic Models Is Important Because