Question:

• "Economists use different assumptions to answer different questions." What does it mean?

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i know that it is one of the three roles of assumtions that econimists use, but what does it mean i am not too sure.

as english is not my first laguage, i would very much appreciate it if your answeres could be in a simple english as much as possible

Thankyou,

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3 ANSWERS


  1. We assume X will happen if Y remains the same.  We also presume that X may change if Y is to change.


  2. As far as I know there are different schools of economics and each school has set up different reasons for inflation, unemployment or growth. When they try to explain inflation some of them will assume that the monetary mass has increased while others will say that a pull in the aggregated demand has been the cause. Of course it might also mean that some axioms are necessary to explain some events, growth and total savings for instance but you cannot usually explain growth related to a increase in total public debt.

  3. Studying economies is very difficult. They are so big with many many variables. We must make assumptions about some parts of the economy (that they will stay the same) in order to get the basic grasp on one part.

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