Suppose economists at the Department of Finance in Ottawa employ an economic model that predicts the effects of an increase in the GST.After implementation of the change,researchers find that the empirical data is in conflict with the theory.They are likely to
A)modify the prediction in light of the new evidence.
B)ignore the empirical evidence and continue using the model.
C)modify the theory in light of this newly acquired empirical knowledge.
D)reject the empirical data as faulty because it did not support the theory.
E)modify the data to suit the definitions and assumptions.

Question

Quizplus · Accepted Answer

Economists would likely modify the theory to better align with the new empirical evidence, as scientific practice involves updating theories based on new data.

Suppose Economists at the Department of Finance in Ottawa Employ