Which of the Following Is an Example of Active Fiscal

question 83

Multiple Choice

Which of the following is an example of active fiscal policy?

• A)Income tax revenues rise in an inflationary period.
• B)Income tax revenues fall in a recession.
• C)Congress passes a major tax increase in an inflationary period.
• D)Unemployment benefits increase in a recession.

---

Definitions:

Contingency-table Test

A statistical test used to determine whether there is a significant association between two categorical variables.

Expected Cell Frequency

In the context of a contingency table, it is the number of observations expected in a cell based on the hypothesis being tested.

Chi-square Test of Independence

The Chi-square Test of Independence is a statistical test used to determine if there is a significant relationship between two categorical variables.

Degrees of Freedom

The number of independent values or quantities which can be assigned to a statistical distribution or to a system without violating any constraint.