If Past Policies Kept the Economy Insulated from Shocks to Aggregate

question 88

Multiple Choice

If past policies kept the economy insulated from shocks to aggregate demand and supply, the historical evidence would support using:

• A) active macroeconomic policy only.
• B) passive macroeconomic policy only.
• C) either active or passive macroeconomic policy.
• D) neither active nor passive macroeconomic policy.

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Definitions:

Distribution

In statistics, the way in which values of a variable are spread or dispersed across a set of data.

Standard Deviation

A statistical measure that quantifies the amount of variation or dispersion of a set of data values from the mean.

Variability

The measure of how data points in a statistical distribution or dataset diverge from the average or mean value.

Central Tendency

A statistical measure that identifies a single value as representative of an entire distribution of data, commonly exemplified by the mean, median, or mode.