Automatic Stabilizers Are Changes in Fiscal Policy That Affect _____

question 67

Multiple Choice

Automatic stabilizers are changes in fiscal policy that affect _____ without the need for explicit action by policymakers.

• A) aggregate demand
• B) the LRAS curve
• C) short-run aggregate supply
• D) aggregate demand and short-run aggregate supply

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Definitions:

Single Index Model

A simplified model to estimate the return of a stock based on the performance of a single market index and the stock's sensitivity to that index.

Portfolio's Sigma

A statistical measure representing the volatility or risk associated with a portfolio's returns.

Beta

A measure of the systematic risk of a security or a portfolio in comparison to the market as a whole.

Adjustment Technique

A method used to modify financial or statistical data for comparisons, analysis, or to meet certain criteria or assumptions.