Automatic Fiscal Policy Is at Work If, as Real GDP

question 4

Multiple Choice

Automatic fiscal policy is at work if, as real GDP increases,

• A) transfer payments decrease and interest rates decrease.
• B) transfer payments increase and tax revenues decrease.
• C) tax revenues increase and transfer payments decrease.
• D) tax revenues decrease and interest rates increase.

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Definitions:

Trials

Refers to the number of times an experiment is performed or the number of individual tests run in a statistical analysis.

Degrees Of Freedom

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

Permanent Full-Time

Employment status where individuals are hired for a continuous duration without an anticipated end date and work a full schedule, usually defined by the employer.

Historical Percentages

Percentages calculated from past data, used to make predictions or assessments about future trends.