Debt Crises

question 22

Multiple Choice

Debt crises:

• A)reduce a nation's buying power.
• B)force imports down.
• C)force exports up.
• D)reduce a nation's buying power, force exports up and force imports down.

Recognize the significance of the Employment Act of 1946.

Understand the effects of economic contractions and expansions on government policy and vice versa.

Discuss the challenges and criticisms of fiscal policy as a tool for economic stabilization.

Describe how misestimates of natural unemployment rates can affect economic policies and outcomes.

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Definitions:

Level of Significance

The probability of rejecting the null hypothesis in a statistical test when it is actually true; a measure of statistical significance.

Sum of Squares

A statistical technique used to describe the total variation in a dataset.

Error

The difference between a measured or observed value and the true value of the quantity of interest.

Normal Probability Distribution

A continuous probability distribution. Its probability density function is bell-shaped and determined by its mean m and standard deviation s.