6. What's Wrong with This Economic Experiment? A researcher hypothesizes that higher tariffs on automobiles will cause

Question:

6. What's Wrong with This Economic Experiment?

A researcher hypothesizes that higher tariffs on automobiles will cause total employment in the United States to increase. Automobile tariffs are raised and the following year employment in the U .S. auto industry increases by 1 00,000, compared to a three-year annual average of 50,000 before the higher tariff legislation was passed. The researcher concludes that the higher tariffs on imported automobiles increased total domestic employment by creating approximately 50,000 jobs in the U .S. automobile industry.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Economics Private And Public Choice

ISBN: 9780123110404

2nd Edition

Authors: James D Gwartney; Richard Stroup; A H Studenmund

Question Posted: