Consider the following statement: "Increasing the minimum wage reduces inequality." This statement... 0 is true because the wages of those making the least will increase 0 could be true or false because business owners will make less money, while workers will make more money 0 is false because the minimum wage decreases employment at the bottom of the income distribution 0 could be true or false because while some people may make more money, others at the bottom of the income distribution may lose employment and make less money Suppose that in March of 2020, state lawmakers in Georgia decided to set a minimum wage of $15 per hour (it did not). Some dude on Twitter decides to compare unemployment in Georgia from March-September 2020 to unemployment in Georgia from March-September 2019. Unemployment in 2020 is higher than in 2019 and so he concludes that the minimum wage law dramatically increased unemployment. An economist argues that Twitter dude's analysis 0 is incorrect because it does not account for the unobserved confounding factor of COVID19 increasing unemployment in the state 0 is correct because a price oor in the labor market will always cause a labor surplus (unemployment) O is incorrect because high unemployment lead Georgia to enact the minimum wage policy, a clear case of reverse causality O is correct because it uses 2019 as a good control group in a model of a randomized control trial A social program enacted in 2015 offers individuals who make less than $28,000 per year a job training program. An economist notices that individuals who make between $28,001-$29,000 (and do not qualify) make a good control group for people in the program who make between $27,000$28,000. The economist has the following data: Year Treatment group mean income Control group mean income 2014 $28,500 $29,500 2015 $30,000 $30,000 Estimate the elfect of the program on average yearly income for the treatment group using the difference-in-di'erences formula. 0 $1,000 0 $500 0 _$1,000 0 $1,500 An economist working for Amazon wants to test how well the "99-cent pricing strategy" works. To do so, she analyzes the sales of products on the main page of Amazon to set up a difference-in-difference-style test. On the first day, all product prices are set at a flat price. On the second day, half of the products' prices are reduced by 1 cent so that prices end in ".99". You have the following data: Day Control group average sales (thousands of units) | Treated group average sales (thousands of units) 200 140 2 190 170 What is the difference-in-differences estimate of the effect of 99-cent pricing? it decreased sales by 10 thousand units O it decreased sales by 40 thousand units O it increased sales by 40 thousand units O it increased sales by 30 thousand unitsClassify each statement as true or false.