Empirical economics refers to the
A. belief that what is true for a part is necessarily true for the whole.
B. exclusion of irrelevant data when analyzing a model.
C. model of economics used prior to the Industrial Revolution.
D. collection and use of data to test economic theories.
Answer: D
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A graph has a point that is either a maximum or a minimum. To the left of the point, the slope of relationship is positive. To the right of the point, the slope is negative
Is the point a maximum point or a minimum point? Be sure to draw a figure that supports your answer.
Gross Domestic Product (GDP) is defined as the market value of all goods and services purchased in the economy during a particular year
Indicate whether the statement is true or false
The long-run Phillips curve is consistent with
a. a negative relationship between unemployment and the rate of expected inflation. b. the expected real wage being equal to the actual real wage. c. the actual price level being equal to the expected price level. d. no relationship between inflation and unemployment. e. all of the above except a.
In 1933, net private domestic investment was a minus $6.0 billion. This means that:
a) gross private domestic investment exceeded depreciation by $6.0 billion. b) the economy was expanding in that year. c) the production of 1933's GDP used up more capital goods than were produced in that year. d) the economy produced no capital goods at all in 1933.