a good model can be very useful for good

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Unformatted text preview: n of how the economy or part of the economy works » Simplified representation of real world Simplified (unrealistic?) » A good model can be very useful for good understanding, analysis and predictions Model: a simplified Model: representation of real world Economic Models Economic Come in many forms: Numerical tables Numerical Graphs Graphs Algebraic equations Algebraic Verbal descriptions Verbal Economic Models Ceteris Paribus Ceteris All other things being equal or holding all other variables constant when one variable is changed Technical Note: Slopes of Technical Curves Suppose we have two variables X and Y, and that Y is function of X This relationship can be represented graphically as a curve in the X-Y plane The slope of a curve tells us by how much Y changes when X changes by 1 unit Slope = (Change in Y) ÷ (Change in X) Technical Note 1: Slopes of Technical Curves Technical Note 1: Slopes of Technical Curves End of Lecture 1 End...
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