A Balanced Budget Would Require That When Real GDP Was

question 33

Multiple Choice

A balanced budget would require that when real GDP was growing rapidly,

• A)the government raise taxes or cut expenditures.This would increase the magnitude of economic fluctuations.
• B)the government raise taxes or cut expenditures.This would decrease the magnitude of economic fluctuations.
• C)the government cut taxes or raise expenditures.This would increase the magnitude of economic fluctuations.
• D)the government cut taxes or raise expenditures.This would decrease the magnitude of economic fluctuations.

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Definitions:

Probability Distribution

A math function tasked with computing the odds of different potential outcomes during an experiment.

Multiple Regression Model

A statistical technique that uses several explanatory variables to predict the outcome of a response variable.

Degrees of Freedom

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

Sum of Squares

A statistical measure of the dispersion of observation values given by the sum of the squared differences from the mean.