Explanation:
One of the key advantages of computable general equilibrium (CGE) is that it analyzes interconnections across multiple sectors and agents of the economy.
A is incorrect. This is an advantage of the input-output approach. B is incorrect. This is an advantage of the integrated assessment model (IAM). D is incorrect. This is an advantage of the macro-econometric approach.
Things to Remember
Ultimate access to all questions.
Q.5222 A data analyst at a large bank wishes to identify and recommend the measurement approach that would serve the bank appropriately. The analyst will base their recommendation on the strengths and weaknesses of the main types of measurement approaches. Which of the following advantages the analyst has highlighted is specific to the computable general equilibrium (CGE) approach?
A
Captures the effects of demand for goods and services on energy and resources.
B
Effectively captures feedback between socioeconomic and climate systems.
C
Analyzes interconnections across multiple sectors and agents of the economy.
D
Utilizes the role of prices to explain market distortions.
No comments yet.