Question

5) Short run fluctioation in the health of an economy are known as ___________ ____________

(3 Pounts) Explain the difference between endogenous and exogenous variables. 6)

7)

8)

Answer 1

Ans5) Short run fluctioation in the health of an economy are known as The business cycle because economic fluctuations correspond to changes in business conditions.

Ans) the difference between endogenous and exogenous variables

Endogenous variable are determined by the model and are explained with in the model where as exogenous variable are taken as given and does not change as Income changes

Endogenous variables are similar to dependent variables and exogenous variables are similar to independent variables.

endogenous variables  Are influenced by other factors in the system and exogenous variable is a variable that is not affected by other variables in the system.