Economic Models

Economics is all about building models to describe how the economy works and conduct policy analyses. So in this lesson we will

1. Build models that we believe are realistic descriptions of the economy.
2. Solve these models for the variables of interest.
3. Present the models using graphs.
4. Conduct comparative static experiments.
5. Analyze dynamics, both equilibrium and disequilibrium.
6. Provide economic interpretation of the results.