If the Cyclically Adjusted Budget Deficit Increases from $200 Billion

question 50

Multiple Choice

If the cyclically adjusted budget deficit increases from $200 billion to $250 billion and GDP remains constant over the two years:

• A)fiscal policy is expansionary.
• B)fiscal policy is contractionary.
• C)fiscal policy is neutral.
• D)the tax system is progressive.

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Definitions:

Prepotent Needs

Fundamental needs that take priority over others, such as physiological and safety needs, which must be satisfied before an individual can focus on higher-level psychological or self-fulfillment needs.

Self-Actualization Needs

The highest level in Maslow's hierarchy of needs, representing the pursuit of fulfilling one’s potential and self-fulfillment.

Physiological Needs

Basic human requirements necessary for survival, such as food, water, shelter, and sleep, according to Maslow's hierarchy of needs.

Behavior Modification Technique

Approaches used to change detrimental behaviors into more positive actions through reinforcement and other strategies.