To test their theories, economists usually have to
A) set up careful laboratory experiments with all variables controlled.
B) first examine theory and what has happened in the past in the real world.
C) use only models that have a proven record of success.
D) anticipate every factor with 100 percent accuracy.
B
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Which of the following statements is NOT true about economic growth?
A) Growth is measured as the overall level of real GDP. B) Growth generally means that overall the members of the nation are better off materially. C) When growth occurs the production possibilities curve shifts outward. D) Growth represents an increase in a nation's productive capacity.
A discouraged worker is one who
a. is underqualified for the current job b. dislikes the current job but is afraid to quit c. after a lengthy unsuccessful attempt to find a job drops out of the labor force d. quits his/her job because the possibility of advancement was very low e. is overqualified for the current job
Real GDP would increase by 3 percent if nominal GDP increased by:
A. 2 percent and inflation increased by 1.5 percent. B. 5 percent and inflation increased by 2 percent. C. 1 percent and inflation increased by 2 percent. D. 6 percent and inflation increased by 2 percent.
Short-run movements in nominal exchange rates are primarily due to:
A. inflation differentials. B. changing prices of goods and services in the countries involved. C. changing expected rates of return on domestic and foreign assets. D. changes in exports.