It Always Rains About an Hour After You Finish Washing

question 42

Multiple Choice

It always rains about an hour after you finish washing your car. Concluding that washing your car caused it to rain is an example of the

• A) fallacy of logic.
• B) post hoc, ergo propter hoc fallacy.
• C) fallacy of inductive reasoning.
• D) ceteris paribus conditions.

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Definitions:

Aggregate Demand

The total demand for all goods and services in an economy at different price levels, within a given time period.

Tax Cuts

Reduction in tax rates intended to stimulate economic activity or achieve other policy goals.

Government Purchases

Spending on goods and services by local, state, and federal governments

Monetary Policy

The process by which a central bank or monetary authority manages the supply of money and interest rates to achieve macroeconomic objectives like controlling inflation, consumption, growth, and liquidity.