An Example of Automatic Fiscal Policy Is

question 25

Multiple Choice

An example of automatic fiscal policy is

• A) the unemployed automatically become eligible for unemployment benefits when they lose their jobs in a recession.
• B) when interest rates automatically fall in a recession.
• C) Congress passes a law during a recession that automatically extends unemployment benefits for those whose benefits will soon expire.
• D) a and b
• E) a,b and c

---

Definitions:

P-Value

The probability of observing test results at least as extreme as the results actually observed, assuming that the null hypothesis is true.

West Nile Virus

A virus transmitted to humans and animals through the bite of an infected mosquito, known for causing West Nile fever.

Null Hypothesis

A hypothesis that there is no effect or no difference, and it serves as a default hypothesis in statistical hypothesis testing.

Alternative Hypothesis

A statement that suggests there is a statistically significant difference between two or more data sets, contrary to the null hypothesis.