ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Economists often use an academic model to help analyze behavior and predict outcomes. Market equilibrium is the situation in which the quantity of output supplied is equal to the quantity demanded. The amount of a price change is affected by the elasticity of both the supply and demand curve.

Detailed explanation-2: -Predictive modeling is a mathematical process used to predict future events or outcomes by analyzing patterns in a given set of input data. It is a crucial component of predictive analytics, a type of data analytics which uses current and historical data to forecast activity, behavior and trends.

Detailed explanation-3: -There are two broad classes of economic models-theoretical and empirical. Theoretical models seek to derive verifiable implications about economic behavior under the assumption that agents maximize specific objectives subject to constraints that are well defined in the model (for example, an agent’s budget).

Detailed explanation-4: -Economic Models and Math Economists use models as the primary tool for explaining or making predictions about economic issues and problems. For example, an economist might try to explain what caused the Great Recession in 2008, or she might try to predict how a personal income tax cut would affect automobile purchases.

Detailed explanation-5: -An economic indicator is a macroeconomic measurement used by analysts to understand current and future economic activity and opportunity. The most widely-used economic indicators come from data released by the government and non-profit organizations or universities.