To be useful,macroeconomic models
A) must be complete, accurate descriptions of the world.
B) never generates testable hypothesis.
C) must be simple.
D) provides a lot of intricate details.
E) must be extremely realistic.

Question

Quizplus · Accepted Answer

Macro models do not need to be extremely realistic, but they should be simple so that they can be easily analyzed and tested. Complex models may provide too much detail and become too difficult to interpret, leading to less useful results. Additionally, models do not need to be complete or accurate descriptions of the world, but they should generate testable hypotheses.

To Be Useful,macroeconomic Models