When Keynesians argue that "correlation does not necessarily imply causation," they are probably criticizing
A)structural-model evidence.
B)reduced-form evidence.
C)indirect-model evidence.
D)black-box evidence.

Question

Quizplus · Accepted Answer

Keynesians are known for their reliance on reduced-form evidence, which focuses on identifying correlations between variables without necessarily specifying the underlying mechanisms or causal relationships. By pointing out that correlation does not necessarily imply causation, Keynesians are expressing skepticism about the validity of relying solely on reduced-form evidence to draw policy conclusions or make predictions about the economy.

When Keynesians Argue That "Correlation Does Not Necessarily Imply Causation