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RELATIONSHIPS BETWEEN ECONOMIC VARIABLES
DIMENSIONAL ANALYSIS IN ECONOMICS
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adaptive expectations answer assumed behavioural equation causation chapter cobweb model comparative statics concerned conﬁdence constant consumers consumption function deﬁned deﬁnition demand and supply demand curve denotes dependent derived dimension dimensional analysis dimensionally homogeneous discussed econometrics economic models economic theory economist endogenous variables equation of exchange equilibrium condition equilibrium values example exogenous expressed fact ﬁrms ﬁrst ﬁxed ﬂow given hence hypothesis increase indifference curves inﬂation inﬂuences instrument variables investment linear lung cancer marginal utility mathematical means measurement money balances multiplier nomic numerical value observable obtain output parameters perfect competition period policy model predictions premises price and quantity primary dimensions problem production function proposition quantity demanded quantity supplied question reduced form equations referred relationship scientiﬁc explanation scientiﬁc laws sector sense solution speciﬁcation statistical stochastic structural equations sufﬁcient Suppose target theoretical unit whilst