The Reason That Fiscal Policy Was Not Helpful in the 1970s

question 10

Multiple Choice

The reason that fiscal policy was not helpful in the 1970s was that such policy is aimed at

• A)both aggregate demand and aggregate supply,but the problem was only with demand
• B)both aggregate demand and aggregate supply,but the problem was only with supply
• C)aggregate demand only,but the problem was in aggregate supply
• D)aggregate supply only,but the problem was in aggregate demand
• E)either aggregate demand or aggregate supply,but the problem was with both of them at once

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Definitions:

Confidence Levels

Confidence levels are the degree of certainty or probability—expressed as a percentage—that a confidence interval contains the true parameter value.

Alternative Hypothesis

The hypothesis in a statistical test that proposes a specific difference or effect, in contrast to the null hypothesis which suggests no effect.

Rejection Region

The range of values in hypothesis testing that if the test statistic falls within, leads to the rejection of the null hypothesis.

Alternative Hypothesis

Represents a statement that contradicts the null hypothesis and is considered true if the null hypothesis is proven to be false, often denoting the presence of an effect or difference.