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Economic theory​ is: A. the specification of a set of assumptions. B. a prediction about cause and effect. C. the development and use of a model to test hypotheses. D. None of the above.

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Answer:

The answer is C. Development and use of model to test

hypotheses

Step-by-step explanation:

Economic theories are theories that explains economic phenomena and tries to create solutions to the identified economic problems. They are comprehensive system of assumptions, hypotheses, definitions and instructions about what should be done in a certain economic situation.

Examples of Economic theories are

Classical economic theory

Keynesian theory

New Classical theory

New Keynesian theory

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