5. Economic models a. are designed to explain all aspects of the economy. b. never employ assumptions
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5. Economic models
a. are designed to explain all aspects of the economy.
b. never employ assumptions that cannot be tested.
c. abstract from reality to reduce the complexity of the world we live in to more simplified, manageable dimensions.
d. provide detailed statistical analysis of the economy.
e. are more useful in macroeconomic applications than in microeconomic ones.
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