Mistaking Accounting Identities for Causality
Loving this course, finding Saif’s lectures are amping up my understanding. However, I am stuck with the following Statement, 4. Mistaking Accounting Identities for for Causality – Macroeconomics assumes relationships based on accounting identities must mean causality.
Since I don’t have a background in economics or accounting, could someone please provide me with some clarify around that statement? What exactly are accounting identities and what is the causality that Saif is referring to?
Thanks in advance.
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