The Increase in the Amount That the Government Collects in Taxes

question 156

Multiple Choice

The increase in the amount that the government collects in taxes when the economy expands and the decrease in the amount that the government collects in taxes when the economy goes into a recession is an example of

• A)automatic stabilizers.
• B)discretionary fiscal policy.
• C)discretionary monetary policy.
• D)automatic monetary policy.

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Definitions:

Indicator Variable

A numeric or categorical variable used in statistical models to represent subgroups or conditions.

Possible Values

The set of all potential outcomes or results that can arise from a specific event or experiment.

Significance Level

The likelihood of incorrectly discarding the null hypothesis in statistical scrutiny, often characterized by the alpha notation.

Multiple Regression Model

A statistical technique that models the relationship between a dependent variable and several independent variables to predict outcomes.