True. If a model fits reality but doesn't generate testable predictions, it is of little value to economists. Economic models are designed to understand and explain the real world. However, one of the key purposes of a model is to provide insights that can be tested and verified using data or experiments. Without the ability to generate testable predictions, it becomes difficult to assess the validity and usefulness of a model. Testable predictions allow economists to compare different models, evaluate their accuracy, and make informed policy recommendations based on empirical evidence. Therefore, a model that cannot generate testable predictions may have limited practical value in the field of economics.
