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12. Evaluate the following statement: “It is easier to build an economic model that accurately reflects events that have alre
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Yes, it is true that it is easier to build an economic model that accurately reflects events that have already occurred than to build an economic model to forecast future events. There are various variables that are involve in the occurrence of past economic events and all these events are analyzed in the detail before developing economic models to forecast future events and it is very difficult to forecast future events as it occurrence and some variables involved in it may be unknown. Many the same variable in one situation may be favorable, while in the other situation it may be unfavorable. There is other instance whereby economic models remains constant and may not be relevant to future economic events due to rapid change in economic environment. Thus, the past economic events provide base to develop economic models to forecast future events but this process demands research and analysis of economic events.

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