If the theory behind an economic model fits the data only moderately well,you would probably want to
A)use the theory to predict what would happen if the economic setting or economic policies change.
B)start from scratch with a new model.
C)enrich the model with additional assumptions.
D)restate the research question.

Question

Quizplus · Accepted Answer

If an economic model only moderately fits the data, it still has some use in making predictions and guiding policy decisions. Starting from scratch with a new model may not be necessary or practical. Rather, enriching the current model with additional assumptions may help improve its fit to the data and increase its predictive power. Restating the research question may also be helpful, but it is not the best choice for addressing the issue of the model's fit to the data.

If the Theory Behind an Economic Model Fits the Data