Which of the Following Is a Testable Proposition in Empirical

question 35

Multiple Choice

Which of the following is a testable proposition in empirical regression tests of the CAPM of average excess returns against beta?

• A) The intercept is zero.
• B) The beta coefficient is the market risk premium.
• C) The market risk premium is greater than the risk-free rate
• D) all of the aboye

Discuss the concept of potential output and factors that influence it.

Recognize how actual price levels compared to expected price levels affect economic decisions and outcomes.

Understand the implications of expansionary and recessionary gaps in the short-run.

Explain the role of resource prices and costs of production in determining the slope of the short-run aggregate supply curve.

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