________________ Is Used When Policymakers Actively Change Government Spending or Taxation

question 17

Multiple Choice

________________ is used when policymakers actively change government spending or taxation in response to changes in the economy.

• A)discretionary fiscal policy
• B)nondiscretionary fiscal policy
• C)expansionary fiscal policy
• D)contractionary fiscal policy

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Definitions:

Z-statistic

A statistic that quantifies the number of standard deviations a data point is from the population mean.

Level of Significance

The threshold below which a p-value is considered statistically significant, indicating the probability of wrongly rejecting the null hypothesis.

Sample Mean

The arithmetic mean calculated from a sample of data from a larger population, used to estimate the population mean.

Population Mean

The average measure of a set of values from the entire population of interest, representing its central tendency.