Macroeconomists cannot conduct controlled experiments, such as testing various tax and expenditure policies, because:
A) it is against the law.
B) they tried it once and it did not work.
C) they must make use of the data history gives them.
D) economists already know the answers that would come out of the experiments.

Question

Quizplus · Accepted Answer

Macroeconomists cannot conduct controlled experiments because they must make use of the data history gives them. In macroeconomics, it is not feasible to hold all variables constant except for one, so macroeconomists must rely on historical data to study the effects of various policies.

Macroeconomists Cannot Conduct Controlled Experiments, Such as Testing Various Tax