Another example is how when the price of gas goes up, people will drive less to buy less gas, as demand goes down as price increases. The law of demand is a principle in economics that states that ...

Their models link one or more economic variables to other economic variables. For example, economists connect the amount individuals spend on consumer goods to disposable income and wealth, and expect ...

They may then be able to use this knowledge to nudge the economy toward a more desired outcome (for example, avoiding a global financial crisis). An economic model is a simplified description of ...