Reverse causality can create confusion between correlation and causation. What does reverse causality imply?
What will be an ideal response?
Reverse causality is said to happen when the direction of cause and effect is mixed up in a study. This can lead to wrong conclusions. For example, researchers may claim that jogging causes people to be healthy. There's a possibility of reverse causality in this claim, because it might be the case that healthy people tend to jog more.
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The equilibrium price in the above figure is
A) $2. B) $4. C) $6. D) $8.
Describe the main explanations for the downward rigidity of wages in the modern macroeconomy. Evaluate their probability of being correct and important
Which of the following is true according to the circular flow model?
A. Firms are suppliers in both the product and factor markets. B. Firms are demanders in the product markets and suppliers in the factor markets. C. Households are demanders in both the product and factor markets. D. Households are demanders in the product markets and suppliers in the factor markets. E. The government is a demander in the product market only.
In the above figure, the marginal revenue product is represented by line
A. "a." B. "b." C. "c." D. "d."