Refer to the data for a utility-maximizing consumer. Assume that new product Z doesn't exist. How many units of X and Y will this consumer buy, given his or her $12 budget?

Diebold and Rudebusch showed that the composite index of leading indicators did not improve forecasts of industrial production because

A) the index is not produced in a timely manner. B) the government manipulates the index so it never predicts a recession. C) the index is not designed for forecasting. D) data on the components of the index are revised.

Economics is called an empirical science because

A) economists study real-world evidence to test their models. B) economists use assumptions in their models. C) economic models have no predictive power. D) economic analysis is only useful in a capitalistic society.