What defines an economic model? In what way is the circular flow model a simplification of reality?

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What defines an economic model? In what way is the circular flow model a simplification of reality? Why would economists want to simplify reality?

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Principles of Economics

ISBN: 978-1285064437

7th edition

Authors: Fred M. Gottheil

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Question Posted: Apr 21, 2015 09:28 AM

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What defines an economic model? In what way is the circular flow model a simplification of reality?

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Our economic reality is so large changing and complex that it is almost impossible to list ...View the full answer

Principles of Economics

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