The Best Way to Settle Questions of Causation Is

question 33

Multiple Choice

The best way to settle questions of causation is

• A) a careful observational study.
• B) a properly designed experiment.
• C) to draw a scatterplot.
• D) to draw a line graph.
• E) to calculate a correlation.

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Definitions:

Recession

A significant decline in economic activity spread across the economy, lasting more than a few months, visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.

Budget Deficit

The financial situation where a government's expenditures exceed its revenues within a specific period, leading to borrowing or debt accumulation.

Tax Revenues

Represents the income that is gained by governments through taxation.

Recession

A phase of short-term economic downturn marked by diminished trade and manufacturing activities, usually recognized by a decrease in GDP for two consecutive quarters.