Countercyclical Discretionary Fiscal Policy Calls for

question 114

Multiple Choice

Countercyclical discretionary fiscal policy calls for

• A)surpluses during recessions and deficits during periods of demand-pull inflation.
• B)deficits during recessions and surpluses during periods of demand-pull inflation.
• C)surpluses during both recessions and periods of demand-pull inflation.
• D)deficits during both recessions and periods of demand-pull inflation.

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Definitions:

Central Limit Theorem

A statistical theory that states that given a sufficiently large sample size from a population with a finite level of variance, the mean of all samples from the same population will be approximately equal to the mean of the population.

Sampling Distribution

The distribution of a statistic (like the mean) that would result from taking a large number of samples from a population.

Sample Size

The number of observations or data points in a sample used to estimate characteristics of a population.

Population Standard Deviation

A measure that quantifies the amount of variation or dispersion of a set of values in a population.