Suppose the Economy Has a High Level of Unemployment and a Low

question 140

Multiple Choice

Suppose the economy has a high level of unemployment and a low level of aggregate output.Which of the following policies could the government implement to alleviate these conditions?

• A)an expansionary fiscal policy that increases tax rates
• B)a contractionary fiscal policy that increases government purchases
• C)automatic fiscal stabilizers
• D)a contractionary fiscal policy that increases tax rates
• E)an expansionary fiscal policy that increases government purchases

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Definitions:

Standard Deviation

A statistic that measures the dispersion or variability of a dataset relative to its mean, commonly used to quantify the risk associated with a security or investment portfolio.

Probability Distribution

A function providing a comprehensive list of values and corresponding probabilities for a random variable within a certain limit.

Expected Rate

The anticipated return on an investment, factoring in the probability of various outcomes.

Standard Deviation

A statistical measure that quantifies the variation or dispersion of a set of data points or investment returns.