Economic models // Economy

Greetings friend back with the cycle of Economics, where I want to share with you the very singular in the economic world without the economic models, making it clear that it does not have to do with the state government system or it was born, since an economic model is the application of all those economic policy tools they teach fiscal and monetary to regulate an economy, where a mathematical model is handled for the analysis of the different variables to be able to estimate and project variables such as inflation, unemployment, PIB, money supply, money demand, type exchange or exchange control, it is about stimulating the economy its internal production achieves as much as possible to cover the demand demanded by society, also considering how social, public spending is, in such a way if the model meets these needs, establish a competitive market that stimulates small and medium producers. The need to increase public spending in this type of situation as a way to increase aggregate demand and thus stimulate supply.

What becomes difficult is to study all the variables at the same time, that is why assumption is used for this complex economic analysis, since it applies: the relationship between economic variables to formulate and test hypotheses, which It will allow us to diagnose a particular situation or phenomenon, to understand a future behavior of the variables, thanks to this economic policy is created to regulate an economy, both fiscal and monetary, it can also be models under the approaches of: microeconomic and macroeconomic. It is considered that it is not easy to handle an economic model that meets all the requirements of the need of the society where it is applied, more specific to the area of ​​study of the economy, also a model is a tool for representing a reality somewhat more complex than the model, however the model serves to make general statements about the reality it represents or applies.

As an Economist I have managed to show that it is not easy since it is difficult to find an economic argument that does not rely on some models, as in the case of China, the government system is very different from its economic model, it is very capitalist, overwhelming. It is said that A theory about the functioning of a system, has linked one or more models that try to reflect the main relationships of the system that are considered relevant in the contact of the theory, since theories are not models, but include models Also, all economies have inflation levels in different cases, due to an unemployment margin always persists, GDP reduction, exchange control, apart I also refer to the fact that the hypothesis of perfect competition implies, prices will hardly be determined according to the Theoretical model of supply and demand. Finally, my friend reader, we have already been clear about the importance of knowing an economic model and within this it uses the provisions which allow us to understand reality in a much easier way and from them to build economic models, that is why the approach of Normative and positive economics for the analysis and projecting the variables in studies, everything is subject to and applied in the Scarcity law of any economy, I hope you will like this unique content.