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25.5 Framework for Evaluating Empirical Evidence
Evidence that examines whether one variable has an effect on another by simply looking
directly at the relationship between the two variables is ____.
A) reduced-form evidence
B) organizational-model evidence
C) direct-model evidence
D) structural-model evidence
Answer: A
Diff: 2 Type: MC Page Ref: 639
Skill: Recall
Objective List: 25.1 Express the different types of empirical evidence
Evidence that is based on a variable having its effect on another variable through channels
rather than a direct effect is known as ____.
A) indirect-model evidence
B) organizational-model evidence
C) reduced-form evidence
D) structural-model evidence
Answer: D
Diff: 2 Type: MC Page Ref: 639
Skill: Recall
Objective List: 25.1 Express the different types of empirical evidence
A ____ model is one that describes how ____.
A) structural; the economy works
B) structural; prices change
C) simple; the economy works
D) analytical; prices change
Answer: A
Diff: 1 Type: MC Page Ref: 639
Skill: Recall
Objective List: 25.1 Express the different types of empirical evidence
Using ____ we can predict how ____ changes may affect the link between M and Y.
A) a structural model; institutional
B) a structural model; political
C) reduced form evidence; institutional
D) reduced form evidence; political
Answer: A
Diff: 3 Type: MC Page Ref: 639
Skill: Recall
Objective List: 25.1 Express the different types of empirical evidence