Explain the Difference Between Fundamental Analysis and Technical Analysis

question 51

Essay

Explain the difference between fundamental analysis and technical analysis.

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.

Understand the mechanisms and effects of fiscal policies on aggregate demand and GDP.

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Definitions:

Poisson Approximation

A methodology in statistics used to approximate the probability of a given number of events happening in a fixed interval of time or space.

Probability

The measure of likelihood that an event will occur, expressed as a number between 0 and 1.

Random Variable

A variable whose values depend on outcomes of a random phenomenon. It can be discrete or continuous.

Standard Deviation

A metric that quantifies the spread or variation of a dataset in comparison to its average value.