Which of the Following Is True

question 54

Multiple Choice

Which of the following is true?

• A) Economists formulate theory and then sometimes try to verify the theory with real-world observations.
• B) Real-world observations are used to formulate economic theory, but this is of little use to policymakers.
• C) Once an economic theory is developed, it is rarely tested against real-world observations.
• D) When a policymaker has an idea about how to advance economic growth, she will ask an economist to formulate a theory, and then this will be compared to real-world observations.
• E) Real-world observations motivate economists to formulate theories about how economic growth evolves, and these theories are then used and reevaluated as new data become available.