A useful macroeconomic theory
A)is based on reasonable and realistic assumptions.
B)is easy to use.
C)has implications that can be tested in the real world.
D)is consistent with the data and observed behaviour of the real-world economy.
E)all of the above.

Question

Quizplus · Accepted Answer

A useful macroeconomic theory must be based on reasonable and realistic assumptions that allow for easy application to real-world scenarios. It must also have implications that can be tested empirically and be consistent with observed data and behaviours in the economy. Therefore, all of the above are necessary criteria for a useful macroeconomic theory.

A Useful Macroeconomic Theory