30.21

Which best describes the purpose served by economic models within an economic system?

Models identify patterns

Models determine the business cycle.

Models control change.

Models define global demand

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Models identify patterns.

Explanation:

The theoretical models of economics are categorised by developing clarity on the true functioning of the economy. Through this method, a well-adjusted model can select the process of operation of economies, as it involves economic cycles and the operation reversion phase of economic factors and crises.

It is worthy to note that, no model shows that capacity to influence any economic aggregate. The models acts as the jurisdiction to progress forward more than in economic events and provide efficient decisions based on their objectives. Take for instance, boosting the economy, preventing further inflation or doing away with crises.

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