Which of the following questions should a successful model predict?
i. How do changes in government policies change the labor market?
ii. How does money supply influence inflation?
iii. What is the relationship between inflation and unemployment?
A) iii only
B) ii only
C) i, ii, and iii
D) i and ii
E) i and iii

Question

Quizplus · Accepted Answer

A successful model should be able to predict how changes in government policies affect the labor market, how money supply influences inflation, and the relationship between inflation and unemployment. These are fundamental economic relationships and dynamics that models aim to understand and predict.

Which of the Following Questions Should a Successful Model Predict