If empirical testing shows that a conclusion that follows logically from economic analysis is not true, then serious doubt is cast on the validity of the theoretical approach.

Question

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If empirical testing contradicts a conclusion reached through economic analysis, it suggests that the theoretical approach may have flaws or assumptions that do not align with the real world. Therefore, this indicates that the validity of the theoretical approach may be questionable.

If Empirical Testing Shows That a Conclusion That Follows Logically