Expected Values

question 14

Multiple Choice

Expected values

• A) are calculated as the average value.
• B) are calculated over all possible outcomes.
• C) are weighted by the probability of an even occurring.
• D) all of these answer options are correct.

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Definitions:

Aggregate Demand

The aggregate need for goods and services in an economy at a specific price level and during a certain time frame.

Constitutional Amendment

A formal change or addition proposed to a constitution, which then requires ratification to become part of the document.

Balanced Budget

A financial statement or situation where total expected revenues are equal to total planned expenditures, without any deficit or surplus.

Automatic Stabilizers

Economic policies and programs that automatically adjust to counteract economic fluctuations without the need for explicit government intervention.