When an economist analyzes the effect of some change under the condition that all other influences remain the same

Question

Quizplus · Accepted Answer

The purpose of analyzing the effect of some change under the condition that all other influences remain the same is to isolate the impact of the change and understand what would happen if other influences did not change. While it is true that other things never truly remain the same, this approach allows for a useful analysis of causal effects. The economist does not necessarily expect other things to remain the same in the real world, but this method allows for a controlled analysis of the effect of the change in question.

When an Economist Analyzes the Effect of Some Change Under