Automatic Stabilizers

question 151

Multiple Choice

Automatic stabilizers

• A) are government programs that automatically implement countercyclical monetary policy in response to economic conditions.
• B) must be approved by Congress every time they are to be implemented.
• C) experience recognition lags.
• D) experience implementation lags.
• E) are government programs that automatically implement countercyclical fiscal policy in response to economic conditions.

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Definitions:

Null Hypothesis

A hypothesis that there is no significant difference or effect, serving as the default assumption that is tested against.

Error Hypothesis

A statement positing the existence of a difference or effect, used in the context of hypothesis testing to denote a hypothesis that is tested for being in error relative to the null.

Larger Population

Refers to a bigger group or category of individuals from which samples can be drawn for statistical analysis.

Smaller Sample

A subset of a population that contains fewer observations, which may affect the reliability of statistical conclusions.