During the 1970s,demand-Management Policy

question 124

Multiple Choice

During the 1970s,demand-management policy:

• A)continued to be highly successful in curing the economy's economic problems.
• B)was found to be highly unsuitable in periods of stagflation such as the decade of the 1970s.
• C)was so unsuccessful that economists advised a return to the pre-World War II philosophy of fiscal policy.
• D)was unsuccessful because automatic stabilizers no longer influenced the economy.
• E)was unsuitable because it affected aggregate supply more than aggregate demand.

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Definitions:

Tchebysheff's Theorem

A statistical theorem stating that for any distribution, the proportion of outcomes within k standard deviations from the mean is at least \(1-\frac{1}{k^2}\) for k > 1.

Empirical Rule

A statistical norm indicating that in a normal distribution, the vast majority of data points lie within a range of three standard deviations from the mean.

Tchebysheff's Theorem

A theorem that provides a minimum bound on the proportion of values that lie within a certain number of standard deviations from the mean for any distribution.

Empirical Rule

The rule in statistics where for any normal distribution, practically all of the data is expected to be within three standard deviations from the mean value.