When Automatic Fiscal Stabilizers Are in Place,a Shock That Causes

question 8

Multiple Choice

When automatic fiscal stabilizers are in place,a shock that causes a fall in the level of economic activity automatically

• A)results in a decline in the federal budget deficit that lessens the fall in income.
• B)results in a rise in the federal deficit that lessens the fall in income.
• C)requires the federal government to balance the budget.
• D)will lead to a permanent increase in the budget deficit.
• E)both a and b

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Definitions:

Equality of Variances

A condition in statistics where different samples have similar variances, important in certain statistical tests, like the ANOVA test.

Independent Samples T-Test

A statistical test used to compare the means from two different groups of samples to see if there is a significant difference between them.

Statistically Significant Difference

A measurement indicating that an observed effect or difference in a study is unlikely to have occurred by chance.

Two Independent Groups

In statistical analysis, two groups of subjects that are randomly assigned and do not influence each other.