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Choose the correct statement or statements 1. An economic model is a description of some aspect of the economic world that in

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Answer #1

Ans: Option A is correct.
Statement 1: Is correct by definition of an economic model.
Statement 2: Is correct because economists use them to check an economic model against facts.
Statement 3: Is correct because an economic model is tested by comparing predictions taken in that model with the facts.
Statement 4 is incorrect.

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