Automatic Stabilizers Are

question 255

Multiple Choice

Automatic stabilizers are:

• A) changes in fiscal policy that stimulate aggregate demand in a recession without the need for explicit action by policymakers.
• B) subject to significant lags.
• C) a result of the United States' regressive tax system.
• D) not very effective fiscal policy.

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Definitions:

Directional

Pertaining to a hypothesis or research that specifies the direction of an expected relationship or difference between variables.

Alternative Hypothesis

The hypothesis stating there is a significant difference or effect, tested against the null hypothesis.

T Statistic

A value used in statistical analysis that helps determine if there is a significant difference between the means of two groups.

One-tailed

A statistical test hypothesis that specifies the direction of the expected difference or relationship.