The Diagram Below Shows Two Budget Deficit Functions for a Hypothetical

question 42

Multiple Choice

The diagram below shows two budget deficit functions for a hypothetical economy. FIGURE 31-2 Refer to Figure 31-2.Initially,suppose the economy is at point A on budget deficit function .Real GDP (Y) is $100 million.If the government implements a fiscal policy that causes the budget deficit function to shift to ,we can conclude that the policy was ________ and the structural deficit will be ________ than previously.

• A)expansionary; smaller
• B)expansionary; larger
• C)contractionary; larger
• D)contractionary; smaller

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Definitions:

Individualistic Cultures

Societies that stress the importance of personal achievement and independence, often at the expense of community and collective goals.

Psychopathology

The scientific study of psychological disorders and abnormalities in behavior, emotions, and thought processes.

Anxious Adults

Individuals who exhibit anxiety in relationships, often stemming from insecure attachments developed in early life.

Authoritative Parents

A parenting style characterized by high expectations of maturity and high responsiveness to children's needs.