Empirical data refers to data obtained as a result of observation. Economists can gather empirical data to test the proposed relationship between money and the price level by gathering data on past changes in the money supply and note the resulting changes in the price level.<span />
An economist gather empirical data to test the proposed relationship between money and the price level is: An economist would look for data on past changes in the money supply, and note the resulting changes in the price level
<h3>Further explanation
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An economist can develop models and theories to provide a description of the world based on observed phenomena. They cannot run a controlled laboratory experiment for the data generation to test the theories and relevant models. There is a close association between price and money.
Economists do not usually develop theoretical models of the economy, but they only analyze summary statistics about the current state of the economy.
An economist would persuade the Federal Reserve to change the money supply to various levels, and observe the resulting changes in the price level.
Unlike researchers in the hard sciences, economists cannot study complex relationships using data.
An economist would look for data on past changes in the money supply, and note the resulting changes in the price level
