All of the following statements would make a reasonable hypothesis to test except
A) Long-run economic growth leads to higher real GDP per capita.
B) An inflation rate below 3% is good for an economy.
C) Increasing tax rates eventually lead to a decrease in work effort.
D) Decreases in the unemployment rate lead to increases in the rate of inflation.
B
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In 1865, Congress raised the tax on state bank notes to 10 percent of the value of notes in circulation. This tax:
a. ended the dual banking system in the U.S. b. was less than the tax on national bank notes. c. was rescinded in 1870. d. was avoided through the use of deposits.
Euler's theorem implies that if a production function exhibits constant returns to scale, then:
A. economic profit is zero. B. accounting profit is zero. C. the marginal product of labour equals the real wage. D. the marginal product of capital equals the real interest rate.
The Federal Reserve can increase aggregate demand by ________.
A. selling government securities in the open market B. reducing the discount rate C. reducing the money supply D. raising the reserve requirement
A service like CARFAX, which provides a used car buyer with the complete history of a used car, is profitable because of the problem of asymmetric information
a. True b. False