Discretionary Fiscal Policy Involves

question 43

Multiple Choice

Discretionary fiscal policy involves

• A) expansion of government revenues during a period of rapid growth.
• B) contraction of government revenues during a recession.
• C) automatic adjustments that affect the size of the budget deficit or surplus.
• D) an intentional change in taxation or government spending.
• E) both a and b.

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Definitions:

Observations

Individual data points or measurements collected during a study or experiment.

Predictor Variables

Variables that are used to predict the value of the dependent variable.

Significance Level

The threshold under which the null hypothesis is rejected in statistical testing, commonly denoted by alpha.

Critical Value

A threshold in hypothesis testing, determined by the chosen significance level, above which the null hypothesis is rejected.