Adapted for the Internet from: Why God Doesn't Exist |
How a theory morphs into a hypothesis |
Fig. 1 Theory morphing into hypothesis |
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and Money, [7] had the following structure:
Theory: Aggregate demand explains variations in large-scale economic activity (macroeconomics) Contemporary theorists take Keynes’s macroeconomic theory for granted. They don’t attempt to prove macroeconomic mechanisms any more:
us find it hard to recognize what the argument is all about. These days it is taken for granted that the government has a responsibility to stimulate the economy out of recession, at least to the extent of reducing interest rates, and modestly applying the brakes during over-exuberant expansion. It is accepted that two of the factors exacerbating economic downturns are the fearfulness of investors in the face of declining corporate earnings and the reluctance of consumers to put down money they suspect they may need later if they are laid off from their jobs. It was not always so.” [9] Instead, they invoke Keynes’ macroeconomic model to formulate the statement of the facts, and use this foundation to explain another theory, for example, microeconomic effects:
theory) [10]
reach of our macroeconomic models?” [11] “ This paper is not concerned with energy efficiency at the microlevel, that is by the individual consumer or firm, but at the macro-level, that is at the aggregate or national level. Its question is ‘does the promotion of energy efficiency (at the micro- level) reduce energy consumption (at the macro-level)’? It presents arguments that the precise effect of energy efficiency decisions at the microeconomic level is impossible to quantify at the macroeconomic level.” [12] |