Economic models .are simplied versions of a more complex reality irrelevant details are stripped away Used to show the relationships between economic variables explain the economy's behavior devise policies to improve economic performance CHAPTER1 The Science of Macroeconomics slide 14CHAPTER 1 The Science of Macroeconomics slide 14 Economic models .are simplied versions of a more complex reality • irrelevant details are stripped away Used to • show the relationships between economic variables • explain the economy’s behavior • devise policies to improve economic performance 3