A constraint to complicated macroeconomic models has been:
A) that firms do not maximize profits.
B) that agents are not rational.
C) that economists have run out of ideas.
D) a lack of computing power.
E) an insufficient understanding of statistics.

Question

Quizplus · Accepted Answer

Complicated macroeconomic models require significant computing power to process the large amounts of data and complex equations. The lack of computing power has been a constraint to these models in the past, limiting their accuracy and applicability.

A Constraint to Complicated Macroeconomic Models Has Been