Economical Models

Question 1

Define static models.

Answer 1

Static models are models that are very simple.

Question 2

Define macro-economical models.

Answer 2

Macro-economical models are models which are centered around the economy as a whole.

Question 3

Define general models.

Answer 3

General models are models with a large number of variables.

Question 4

Define equilibrium models.

Answer 4

Equilibrium models are models focused around producing a state of equilibrium where supply and demand are equal and prices are stable.

Question 5

Define disequilibrium models.

Answer 5

Disequilibrium models are models based on a disruption of the supply and demand values, an interruption of the equilibrium state of an economy.

Question 6

Define partial models.

Answer 6

Partial models are models with very few variables; all others are ‘ceteris paribus’.

Question 7

Define dynamic models.

Answer 7

Dynamic models are models which are very complex, often use computer-modelling and time as a variable.