The Accompanying Table Shows the Cyclically Adjusted Budget De?cit as

question 264

Multiple Choice

$$\begin{array} { | c | c | } \hline \text { Year } & \text { Deficit it as a \% of GDP } \\\hline 1 & 1.5 \% \\\hline 2 & 1.4 \\\hline 3 & 2.0 \\\hline 4 & 1.8 \\\hline 5 & 1.5 \\\hline\end{array}$$ The accompanying table shows the cyclically adjusted budget de?cit as a percentage of GDP over a ?ve-year period. In which year was ?scal policy turning more expansionary?

• A) Year 2
• B) Year 3
• C) Year 4
• D) Year 5

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Definitions:

Sophomores

Second-year students in a four-year degree program at a high school or university.

Critical Value

A point on the scale of the test statistic beyond which we reject the null hypothesis; it marks the threshold for significance.

Hypotheses

Proposed explanations or predictions that can be tested through research and experimentation.

T-statistic

A type of statistic used to estimate the population parameter based on a sample statistic.