Compared to an Economy's Self-Correcting Mechanism, Active Contractionary Fiscal Policy

question 127

Multiple Choice

Compared to an economy's self-correcting mechanism, active contractionary fiscal policy will

• A)work more slowly and calmly.
• B)work more quickly.
• C)have less deflationary effects.
• D)have a smaller effect on real GDP.

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Definitions:

Skewed Right

A distribution of data where the tail on the right side of the distribution is longer or fatter than the left side.

Normal Distribution

Normal Distribution is a probability distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence.

Skewed Right

A distribution that has a tail on the right side, indicating that the majority of data points are concentrated on the left.

Homeowners

Individuals or entities that own and typically reside in a residential property.