An Empirically Based Theory Could Be Described as Being

question 9

Multiple Choice

An empirically based theory could be described as being:

• A) developed and supported on the basis of observations.
• B) based on a set of accepted scales and measures.
• C) based on a political approach developed in the early nation states.
• D) related to a specific time period and not able to be generalised.

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Definitions:

GDP Deflator

A benchmark for evaluating the price levels of all new, home-produced, end-use goods and services within an economic system.

Price Index

A measure that examines the weighted average of prices of a basket of consumer goods and services over time.

Inflation Rate

The percentage rate at which the general level of prices for goods and services is rising annually.

CPI

Tracking the average evolution in pricing for a collection of goods and services purchased by people in urban areas, the Consumer Price Index serves as an indicator of these changes over time.