Which of the following lists the four steps we use to study macroeconomic behavior in the correct order?
A) (1) document the facts; (2) develop a model; (3) compare the predictions of the model to the original facts; (4) use the model to make other predictions that may eventually be tested
B) (1) document the facts; (2) use the model to make other predictions that may eventually be tested; (3) compare the predictions of the model to the original facts; (4) develop a model
C) (1) compare the predictions of the model to the original facts; (2) develop a model; (3) document the facts; (4) use the model to make other predictions that may eventually be tested
D) (1) develop a model; (2) document the facts; (3) compare the predictions of the model to the original facts; (4) use the model to make other predictions that may eventually be tested
E) None of the above answers are correct.

Question

Quizplus · Accepted Answer

The correct order is to first document the facts, then develop a model, compare the predictions of the model to the original facts, and finally use the model to make other predictions that may eventually be tested. Option A accurately lists the steps in this correct order.

Which of the Following Lists the Four Steps We Use