The assumption of the Economy

Greetings friend back with another segment in the field of Economics, a lot will be asked to understand economics, as science relies on another discipline, but uses the assumptions a lot to project how economic phenomena and their variables can happen, going through of the technical analysis of statistics to see if the economic model really satisfies the need of economics based on the law of scarcity of resources, but the use of assumptions allows us to compare with another economy what is happening and see how it can behave inflation, unemployment, GDP, one of two approaches to the economy such as: normative and positive economics, one shows us what the reality of the economy is like in real time and the other projects how it should be by using the assumption. When we see news about the economy such as inflation in real time, the assumption is already mounted on that study variable in the field of macroeconomics.

They allow us to understand reality in a much easier way and from them to build economic models, let's think about the following, dear reader, it also allows us to understand the behavior of a consumer as their purchasing trend, whether it is a normal product and substitutes that satisfy their needs. To think that any economy has its levels of inflation and unemployment since not every population is active, but the economy is always active, either informally and normally within domestic production. It seems to lie but even in our lives we make choices, we create our own assumption to solve our lives, apart from a good application, I like to share this information, since the Economy is very interesting for all businesses, you have to know when we should invest with the sense of the bank rate, such as inflation to invest to know our ability to pay, will also allow us as risking to have a better profit, even making a good market strategy.

Every model sounds very ironic but as an economist I tell you the following, At the same time that economic models help us to simplify reality, they have the weakness that many times they do not capture all the relevant variables and therefore their conclusions are wrong, not only It is a mechanism to determine the quality of a model, it is possible the existence of behaviors that deviate from the average, these tend to compensate each other.