Economists often evaluate a theory in terms of how consistently and accurately it predicts what happens. Implicit in this position is the belief that
A) if the theory's predictions are consistently accurate, then there is a fairly good chance that the theory is a good explanation of how things work.
B) if the theory's predictions are consistently accurate, then there is a fairly good chance that the theory will be accepted by others.
C) if the theory's predictions are consistently accurate, then there is a fairly good chance that the theory's assumptions (even if they initially seem unrealistic) capture something that is essential to explaining what it is that the theory is trying to explain.
D) all of the above
D
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The economy pictured in the figure has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; A B. recessionary; C C. recessionary; B D. expansionary; A
The the government increases the level of government expenditure. If there is no change in the aggregate supply curve, then aggregate demand will ________, real GDP will ________, and the price level will ________
A) increase; remain the same; increase B) remain the same; increase; increase C) increase; increase; increase D) decrease; increase; increase E) decrease; remain the same; decrease
Which contingency theory focuses on the readiness of the employees?
a. path-goal model b. life cycle model c. vroom-yetton model d. fiedler model
The slope of a line is the:
A. change in the value on the vertical axis divided by the change in the value on the horizontal axis. B. value on the horizontal axis divided by the value on the vertical axis. C. value on the vertical axis divided by the value on the horizontal axis. D. change in the value on the horizontal axis divided by the change in the value on the vertical axis.