Which of the Following Statements Is (Are) True? I

question 272

Multiple Choice

Which of the following statements is (are) true? I. Changes in tax rates only impact aggregate demand.
II) According to the Laffer curve, if the tax rate is above 50%, lowering the tax rate will always raise tax revenue.
III) A repeal of existing investment tax credits will lead aggregate supply to shift to the left.

• A) I and II only
• B) II and III only
• C) II only
• D) III only

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Definitions:

P-value

The probability of obtaining test results at least as extreme as the ones observed during the test, assuming that the null hypothesis is correct.

P-value

A statistical measure that helps to determine the significance of results, indicating the probability of observing the results given that the null hypothesis is true.

Null Hypothesis

Null hypothesis refers to a statement used in statistics that suggests no statistical significance exists in a set of given observations.

Alternative Hypothesis

The alternative hypothesis is a statement in hypothesis testing that proposes a specific relationship between variables, contrasting the null hypothesis.