The Policy Objective of an Annually Balanced Government Budget

question 57

Multiple Choice

The policy objective of an annually balanced government budget

• A)is feasible and would be stabilizing.
• B)is easy to achieve but would be destabilizing.
• C)would be stabilizing,but is difficult to achieve.
• D)is difficult to achieve and would be destabilizing.
• E)would eliminate the swings in real GDP.

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Definitions:

Null Hypothesis

A statistical hypothesis that assumes no significant difference or effect in a certain context, used as a default position until evidence suggests otherwise.

Correlation

A measure of the relationship between two variables, indicating how one may predict or relate to the other.

Consensus Validation

A method of establishing the reliability of a construct by demonstrating agreement among independent judges or assessments.

Big Five

The Big Five refers to a model in personality psychology comprising five broad personality traits: openness, conscientiousness, extraversion, agreeableness, and neuroticism.