Question 1
Which of the following is
not one of the reasons why it is difficult to empirically test alternative macroeconomic models against one another?
◦ The rational-expectations assumption is difficult to test.
◦ Macroeconomic models differ in ways that are hard to standardize for.
◦ Macroeconomic models cannot be expressed in mathematical terms.
◦ The amount of data available is fairly small.
Question 2
It is difficult to empirically test alternative macroeconomic models against one another because
◦ macroeconomic models do not predict the same outcomes from policies.
◦ macroeconomic models differ in ways that are hard to standardize for.
◦ macroeconomic models cannot be expressed in mathematical terms.
◦ macroeconomic models are always expressed in scientific terms.
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