Which of the following is true?
A)A variable has a causal effect on another variable if both variables increase or decrease simultaneously.
B)The notion of 'ceteris paribus' plays an important role in causal analysis.
C)Difficulty in inferring causality disappears when studying data at fairly high levels of aggregation.
D)The problem of inferring causality arises if experimental data is used for analysis.

Question

Quizplus · Accepted Answer

The notion of 'ceteris paribus' (all other things being equal) is crucial in causal analysis because it allows the analyst to isolate the effect of a single variable on another variable while holding all other variables constant. Option A is incorrect because two variables increasing or decreasing together does not necessarily indicate a causal relationship between them. Option C is incorrect because difficulty in inferring causality may still exist at high levels of data aggregation. Option D is incorrect because experimental data is often considered the gold standard for inferring causality.

Which of the Following Is True