Calculating a Single Cost or Benefit Figure That Takes Risk

question 119

Multiple Choice

Calculating a single cost or benefit figure that takes risk into account involves:

• A)estimating how likely different outcomes are and estimating the financial implications of each outcome.
• B)calculating expected value.
• C)taking the average of each possible outcome of a future event,weighted by its probability of occurring.
• D)All of these statements are true.

Understand the concept of aggregate expenditure and its relationship with fiscal policy.

Recognize the role of government in affecting economic variables through fiscal policy.

Identify the fiscal measures to close a recessionary gap.

Understand how fiscal policy influences real GDP and employment.

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Definitions:

United States

A country located primarily in North America, comprising 50 states, a federal district, and various territories.

Cancer

A disease characterized by the uncontrolled division and spread of abnormal cells in the body, potentially leading to death if not treated.

Psychoneuroimmunology

A field in which psychologists, biologists, and medical researchers combine their expertise to study the effects of psychological factors on the immune system.

Immune System

The body's defense mechanism against infectious organisms and other invaders, comprising various organs, cells, and proteins.