In chapters 1 and 2, you will start reading about how economics “paints a picture” used to interpret real-world situations but may be based on estimations, averages, and what should happen rather than what is happening. For this discussion, research a recent article about the economy and reflect on the economic model instead of what happened in the economy. Please make sure your journal articles are within the past ten years and are journal articles, not Wikipedia, not Investopedia, or newspaper articles like the “Wall Street JournalLinks to an external site..”
Discuss the role of economic modeling as it pertains to the following concepts:
Write one paragraph describing the article you found and how the model represents the economic situation. Highlight what method was used, for example, estimation of the number of people in the labor market or did they use accurate numbers. Make sure you reference your journal article in MLA or APA formatting.
Write one paragraph examining the impact of the Economic Model on decisions that will be made. This could be the government, the Federal Reserve Bank, Businesses, or Customers. Provide a real-life example of how the information can be used by one company or customer to inform their decision-making.
Write one paragraph reflecting upon the Production Possibility Frontier (PPF) and how business decisions are based on the limitations put on them by this model.