Describe economic models and theory How these models help th

Describe economic models and theory. How these models help the economists to make different judgments about what is needed to explain their interpretations of reality.

Note : the Answer should be Computerized

Solution

An economic model explains a theoretical aspect of any economic phenomenon and represents them through quanitative variables or graphical representations.

\"The economic model is a simplified, often mathematical, framework designed to illustrate complex processes. Frequently, economic models posit structural parameters.\"

-(Moffatt, Mike. (2008) About.com Structural Parameters Economics Glossary; Terms Beginning with S.)

The economic problem is first observed, then studied in detailed with a hypothesis and then, theories and economic models are framed.

Models help the economists to explain their thoughts on economic phenomenon, to make different judgements to explain realistics situations by considering the economic variables in controlled conditions and by making predictions about the economic activity.

The economic models help economists: