Provisions in the Law That Imply Automatic Increases in Government

question 39

Multiple Choice

Provisions in the law that imply automatic increases in government spending or decreases in taxes when real output declines are called:

• A) autonomous stabilizers.
• B) automatic stabilizers.
• C) the marginal propensity to consume.
• D) the income-expenditure multiplier.

Define and identify conditions of homoscedasticity and heteroscedasticity.

Calculate and interpret residuals and standardized residuals.

Understand and identify autocorrelation in error terms.

Apply regression analysis to calculate predicted values of y.