The assumption of the Economy
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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.