Question: QUESTION 5 In every economic model, we have variables we seek to explain or predict ( endogenous variables ) , and a set of variables
QUESTION
In every economic model, we have variables we seek to explain or predict endogenous variables and a set of variables we call shift variables. Which of the following is a correct statement about these two types of variables:
a both shift variables and endogenous variables are on the axis of our graphs
b shift variables aren't on the axis of our graphs, but endogenous variables are on each graph's axis
c shift variables are on each graph's axis, but endogenous variables aren't on the axis of our graphs
d when the endogeno variables change, those changes cause changes in the shift variables on our graphs
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