What simplifying assumptions does the traditional macroeconomic model make (in addition to those made in the NIPA)? 

The simplifying assumptions are:

 1) The household and institutions sector having only households.

2) Only the business sector invests; the household and institutions sector and the government sectors are supposed to only consume 

3) Only the business sector produces

 

Posted Date: 8/1/2013 3:59:15 AM | Location : United States

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